If You Can’t Pay Your Taxes
So you can’t afford to pay your taxes at the time being? Its OK, the IRS has options for you. This is probably a more common occurrence than you actually think. The IRS literally handles thousands and thousands of taxpayers each year that cannot pay what they owe. You can be assured that the IRS will have a method available to you in order to stay in good standing with them, even if you can’t pay in full or even at all. All you need to do is make the appropriate filing with them.
What an Installment Agreement Is
An installment agreement is an agreement between the IRS and the taxpayer that allows the taxpayer to pay back the taxes owed in monthly increments until the tax owed, plus interest has been paid off. An installment agreement is fairly easy to apply for. The good thing about an installment agreement is that once a taxpayer enters into this agreement the IRS will stop or will not charge any additional penalties on the taxes owed as long as payments are made on time and in the monthly required amount. It is best to setup an installment agreement at the time you know you cannot afford the taxes owed but you can still setup at anytime. This agreement is also a great way to remove or prevent the IRS from placing a lien and stops the IRS from enforcing a levy. It is important to make the required monthly payments because the IRS can then take collection actions against you if they choose.
Applying for an Installment Agreement
There are three different ways to apply for an installment agreement. It doesn’t matter which you choose they will all accomplish the same thing, just some are quicker than others.
1) Complete the Installment Agreement Request Form: IRS Form 9465
2) File on the internet at the following address: Online Payment Agreement Application
3) Over the Phone by Calling 1-800-829-1040 – They will not setup completely, but will give you some guidance and them mail you forms afterwords or tell you where to get on the internet.
If You Don’t Qualify for an Installment Agreement
If you do not qualify for an installment agreement it is because the IRS believes you will not be able to make the monthly payments or they believe you making the filing to stall collections or one of various other reasons the IRS can come up with. In that case you can ask if you can qualify for a partial payment installment agreement that will allow you to make lower monthly payments than those required with regular installment agreement. It is a good idea to talk with a tax professional if you can’t qualify because they can figure out the best method for you to resolve your tax problem with the IRS and ensure the IRS accepts it.
Related posts:
