Don’t let inability to pay stop you from filing your tax return on time! The IRS offers installment payment plans if you find yourself with a tax bill too big to pay. Most people don’t realize that in order to qualify for an installment agreement, you must be up to date on all your tax filings and deposits. Here, we will tell you about the IRS agreements available.
The simplest option is an IRS streamlined installment agreement for individuals who owe less than $50,000 in tax, penalty and interest. You can file online for this option and never talk to an IRS agent if you qualify! You will need to pay at least the minimum monthly amount required by the IRS under this option.
If you do not qualify for the streamlined program because you owe more than $50,000, or if you cannot afford the minimum monthly payments required by the IRS under the streamlined program, you can still apply for an installment plan. Be prepared to provide the IRS with proof of your monthly income, expenses, assets and liabilities to help you get that lower monthly payment amount you are requesting.
In most cases, participation in a direct debit installment agreement can help you to avoid the IRS putting a lien on your property!
Call today for more information!
Honorine M. Campisi, CPA