The idea of getting notifications from the Internal Revenue Service fills most people with dread. They know it can't be good news when they see official mail. Most individuals see paying taxes as a necessary evil, and they want as little contact with this agency as possible. If you don't have the money to pay the Internal Revenue Service what you owe it, just filing an extension won't do you any good. You have to pay the amount owed by the deadline regardless of which forms you fill out. Although delaying tactics are not an option, there are other affordable tax relief plans that may work for you.
The reasons for staying out of trouble in the first place are numerous. If you work for a living, the IRS can garnish your wages, which may threaten your employment. Retirees can have their Social Security checks cut by up to fifteen percent when they owe the government money and haven't paid. The Internal Revenue Service has seized property including houses, boats, planes, equipment, and cash. It can instruct your bank to withdraw all the available money in your account and forward it to them as payment on outstanding debt.
These things don't have to happen however, even though the IRS will do them as a last resort. They would rather work with you, but you must do your part by communicating and cooperating with them. One of the most common ways to pay back taxes is by setting up an installment plan approved by the IRS. You will make payments every month until you are free and clear of the debt.
If you have the funds available, you could work out a plan for paying a lesser amount than you actually owe by agreeing to make a lump sum payment or to pay the debt over a short period. When you can get the agency to agree to this, you can avoid paying a lot of penalties and interest.
It is actually possible to become a person who is not currently collectible. You will probably need a good tax attorney or public accountant to help you go through this, but if you are successful, they will not seize assets during a specified grace period.
Depending on the amount you owe, you might considering putting the debt on a credit card. There are some companies that bill themselves as credit card debt settlement businesses. You should think carefully before you agree to use one of them and make sure you get everything in writing if you decide to go ahead with this plan.
Bankruptcy is always an option, and under some circumstances, filing for it can get you out of debt with the IRS. If this is the only reason you are filing, you need to be sure you qualify before formalizing the action.
The easiest way to avoid IRS problems is to file your returns, electronically if possible, and pay anything you owe. When you can't do that, let them know as soon as possible.
The reasons for staying out of trouble in the first place are numerous. If you work for a living, the IRS can garnish your wages, which may threaten your employment. Retirees can have their Social Security checks cut by up to fifteen percent when they owe the government money and haven't paid. The Internal Revenue Service has seized property including houses, boats, planes, equipment, and cash. It can instruct your bank to withdraw all the available money in your account and forward it to them as payment on outstanding debt.
These things don't have to happen however, even though the IRS will do them as a last resort. They would rather work with you, but you must do your part by communicating and cooperating with them. One of the most common ways to pay back taxes is by setting up an installment plan approved by the IRS. You will make payments every month until you are free and clear of the debt.
If you have the funds available, you could work out a plan for paying a lesser amount than you actually owe by agreeing to make a lump sum payment or to pay the debt over a short period. When you can get the agency to agree to this, you can avoid paying a lot of penalties and interest.
It is actually possible to become a person who is not currently collectible. You will probably need a good tax attorney or public accountant to help you go through this, but if you are successful, they will not seize assets during a specified grace period.
Depending on the amount you owe, you might considering putting the debt on a credit card. There are some companies that bill themselves as credit card debt settlement businesses. You should think carefully before you agree to use one of them and make sure you get everything in writing if you decide to go ahead with this plan.
Bankruptcy is always an option, and under some circumstances, filing for it can get you out of debt with the IRS. If this is the only reason you are filing, you need to be sure you qualify before formalizing the action.
The easiest way to avoid IRS problems is to file your returns, electronically if possible, and pay anything you owe. When you can't do that, let them know as soon as possible.
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