Do You Need an IRS Payment Plan?
Chances are, if you owe the IRS any back taxes it’s an amount you can’t pay off all at once. Instead of trying to borrow the money and going deeper in debt, it may be easier to get on an installment plan. But choosing this option, you will be able to pay off your taxes but without going bankrupt at the same time. These installment agreements are meant to make it easier for you to fulfill your obligations.
Not sure how to get started? Or do you know if you even qualify? That’s why it’s best to talk to an experienced IRS tax attorney who can guide you through the process or offer you a better option than a payment plan. If you owe money to the IRS, contact the Houston tax attorneys at Pro Tax Councel now for a free consultation.
Do You Qualify for a Payment Plan?
IRS payment plans are not meant for everyone who owes taxes. You need to owe $50,000 or less ($25,000 or less if you are a small business) in combined taxes, penalties, and interest in order to qualify for the installment agreement. In addition, you will have to pay off the debt within 72 months and your payment must be at least $25 a month. However, if you don’t match these requirements, you may still be eligible for an installment agreement, though it’s best to talk with a tax attorney to find out all your options.
If you do qualify for an installment agreement, you will have to pay a setup fee between $43 and $120. In addition, if you ever receive a refund in the future, those funds will go to your debt.
Is an IRS Installment Agreement Best For You?
Ignoring your tax problem won’t make it go away any time soon. An installment plan may be the right way to go — although it means you will have another bill each month, an installment plan will prevent any interest from piling onto your debt. However, it’s best to explore all the options available to you before signing the agreement. There may be a way to lower your bill. That’s why you should speak with a tax lawyer before making any decisions. If you have tax problem and need help, don’t delay. Contact the Houston tax attorneys at Pro Tax Councel today for a free consultation.