Tax debt is one of the problems you would not want to have with the Internal Revenue Service (IRS). Still, it can happen to people. Instead of hiding away or trying to bury the problem, the best solution is to face it right away. Doing so can relieve you from stress early and allow you to find answers fast. If your problem is being unable to pay your taxes in their full amount, the solution you need is simple. You make installment agreements with the IRS.
Installment Agreement With IRS Is Possible
It is possible to seek help from the IRS when paying a huge debt. In case you do not know, the IRS offers several payment arrangement options. Your job now is to find the right one that can allow you to slowly pay off your dues according to what fits your situation best.
Here is what you should do:
- Read your installment options carefully and be mindful of every vital detail (such penalties and interest applied). Although you are about to make an agreement with them, that does not free you from the fact that you have things to pay off.
- Request for an installment agreement via visiting their website or submitting Form 9465
- Should you already have an existing agreement and want to add tax liabilities, you have to contact the IRS directly.
What Is In the Installment Agreement?
The IRS sets specific guidelines for when you are eligible for their offered installment. Usually, you need to meet specific criteria before getting your application approved. Here are some of those requirements that will allow you to get installment agreements:
- You and your spouse have not yet filed a late return or payment in the past five years.
- You are clear of bankruptcy.
- If you owe the IRS more than $10,000, you agree to provide them with information about your finances.
- You agree to fulfill the payment you owe in two to three years.
- You agree to pay on time and in the full amount of your dues in the future tax years.
Once you get approval for this agreement, the IRS will not file a tax lien or levy caused by your outstanding tax dues. That means that you will still retain the rights to the assets you have despite not paying their taxes on time.
If something happens to your finances later and you fear that you cannot pay as agreed, all you need to do is promptly report your condition and concerns to the IRA. They will tell you your next possible options. They can extend your payment plan and file a federal tax lien to serve as their protection. Their offer may differ based on your current situation, what you can provide them, and many other factors.
Conclusion
No tax problems cannot be resolved without confirmation and solution creation. If you have tax debts, do not hesitate to report yourself to the IRS. They are willing to help and compromise with people. That would be a better option rather than losing everything due to hiding. An installment plan agreement involves the two parties agreeing to specific terms and conditions. You only need to be guided well to make the best deal possible.
Have some more tax problems you need solutions to? Whether you need tax debt relief or other fresh tax relief solutions, we are your tax resolution specialist ready to help you. Axiom Tax Resolution Group can help you identify the right type of installment agreement for your installment agreement with the IRS. Contact us today to learn more.
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