Taxpayers with outstanding IRS debt often underestimate the consequences that occur when taxes are not paid. The Internal Revenue Service assesses late fees, penalties and interest which can double or triple the amount owed. People who fail to submit annual returns or pay outstanding taxes can be charged with tax evasion. If you owe the government money, now is the time to take action.
Solutions are available to help clear IRS debt. Contrary to popular belief, the Internal Revenue Service is willing to help taxpayers establish a payment plan. In some cases, they will write-off a percentage of back taxes. Taxpayers who ignore IRS debt collection letters are setting their self up for financial fallout.
Bankruptcy Attorney New Orleans, Kentucky Bankruptcy Lawyer, Free Bankruptcy,
In order to resolve tax problems, taxpayers must contact the Internal Revenue Service taxpayer assistance call center. Business hours are 7 a.m. to 10 p.m., Monday through Friday. Individuals can obtain help by calling 1.800.829.1040. Business owners and self-employed taxpayers can call 1.800.829.4933.
Individuals owing less than $25,000 can establish an IRS debt repayment plan online. The first step involves submitting a Form 9465 taxpayer installment agreement request. Once approved, taxpayers can choose to pay in full, pay monthly installments, or obtain a short term extension which allows them to pay their tax debt in full within two to three months. Presently, the IRS charges taxpayers a user fee of $105 to establish a payment plan. This amount can be reduced to $52 by establishing a direct deposit account.
It is important to note the IRS will not grant payment plan approval unless all past due tax returns are filed. The IRS assesses a failure-to-file penalty of 5-percent each month the return is delinquent, with a maximum penalty of 25-percent.
Taxpayers who have filed returns but not paid back taxes incur a monthly failure-to-pay penalty of 1/2-percent until taxes are fully paid. Unpaid tax penalties are calculated from the original filing date.
Taxpayers carrying IRS debt of $10,000 or more might qualify for a partial payment installment agreement. This plan usually requires assistance from a tax attorney. All past due returns must be filed before the IRS will enter into an installment plan. Taxpayers are required to submit monthly payments until the agreement is fulfilled and the remaining tax debt is forgiven.
Taxpayers able to pay a reasonable amount of back taxes might qualify for an Offer in Compromise agreement. Using this tax relief option, the IRS agrees to accept less than the full amount of outstanding taxes owed.
Offer in compromise is typically used as a last resort. The IRS only accepts this arrangement if they feel there is little chance of collecting the full amount owed. When offer in compromise is used taxpayers allow the IRS to retain future tax refunds which will be credited to the taxpayer's account. Individuals must submit monthly installment payments until the contractual agreement is fulfilled.
Homeowners who lost their home to foreclosure may qualify for tax relief under the Mortgage Forgiveness Debt Relief Act. Debt forgiven through foreclosure or debt reduced through mortgage refinance of a principal residence may qualify.
Taxpayers who file for personal or business bankruptcy must adhere to 908 bankruptcy tax codes. Cancelled debt through bankruptcy is a complicated issue which is best handled by a certified public accountant or tax attorney.
While IRS debt can be overwhelming, solutions exist to resolve the problem. Tax debt payment options and answers to frequently asked tax questions can be found at IRS.gov.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Portland Bankruptcy Attorney
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment