It is never great news to discover that you owe taxes to the IRS. It is even worse when you are unable to make the required payments. If you are in a difficult financial situation due to unforeseen circumstances, you should contact the IRS as soon as possible before they start their collection actions.
The IRS generally accepts various payment plans if you cannot full pay the total balance owed. The most basic tax payment plan is a streamline payment plan. The IRS usually gives taxpayers 72 months to pay off their back taxes. If the individual cannot fulfill the required payments within that timeframe, he or she needs to disclose their financial information and pay the disposable income amount. It is recommended that you work with a tax debt resolution specialist when handling tax related documentation.
Before we proceed, you should realize the importance of paying your taxes on time. If you do not fulfill your IRS tax payments by ignoring the tax bills and avoid setting up a payment plan, the IRS can take the following actions:
Tax liens: The government can claim your personal property and assets by placing a tax lien on them. A lien does not involve an actual seizure and is generally issued if you owed more than $10,000 in unpaid taxes.
Tax levies: If you ignore the lien notices, the government may seize your property. Your car, home, wages, and funds in your bank account may be seized.
This tax debt relief option is suitable for taxpayers who can never pay their back taxes in full. The IRS may agree to accept a lesser amount if he or she can make the case with supporting documents.
You have the ability to pay off your back taxes. However, you may need more time to settle the debt. In this case, an installment agreement may be your best bet. To be eligible for this IRS tax payment plan, you should be punctual on your tax return filings, and prove that you can pay what you owe within 72 months or the 10-year collection statute.
If you have documented proof that paying down your tax debt would cause immediate economic hardship, e.g. a fire sale of your main home, you may request for an extension of up to 18 months. If you need to apply for the extension, our tax attorneys will prepare an official statement that itemizes your income, expenses, assets, and liabilities. The information must be accurate – three months prior to the tax due date.
We understand that back taxes can be a major hindrance when you are trying to improve your financial situation. That’s why our experienced tax attorneys can help you identify and apply for the best IRS tax payment plans. Since our inception, we have successfully closed thousands of tax debt resolution cases. Our dedicated team has helped individual taxpayers, small business owners, LLCs, etc., get back on track to a steadier financial future. We continually strive to achieve and maintain a stellar customer satisfaction rate.
The tax debt repayment process does not need to be arduous. Contact us today to schedule a free consultation!