Eliminating IRS Debt with a Tax Payment Plan If you owe the IRS a lot of money, and you’re unable to pay off the debt, you might be able to set up a tax payment plan. You could work out an agreement with the IRS, but you shouldn’t ignore this problem. Doing so could cost you more in the long run. They can take your home, freeze your bank accounts, they can take whatever refunds you may be eligible for, and they can even garnish your wages. All of these things can have a negative impact on your credit score, and that can lead to serious consequences. You might not be able to purchase a home, buy a car, or even get a credit card.
Types of Tax Payment Plans According to Federal Law, the IRS has ten years to collect a tax debt. If you’re unable to pay them what you owe, you might be able to work out an agreement. But it’s important to know what your options are. The IRS will usually accept a tax payment plan if a person owes $10,000 or less, but they have to determine whether or not you’re able to pay them in full before they can give you that option. They charge a fee for this service, which will depend on how much you owe. Usually it’s around $40 – $100. If your debt is somewhere around $25,000 – $50,000, you can offer to pay less than what you owe. This is called an “offer-in compromise,” and it comes with a $150 filing fee.
Getting an Attorney to Set Up a Tax Payment Plan If you’ve ever dealt with the IRS before, you know how daunting it can be. Swimming through a sea of forms and regulations can leave you frustrated and confused. That’s why it helps to find a tax professional who knows what the current tax laws are, but even that can seem like an impossible task. How do you know if that person is giving you sound advice? It’s always a good idea to check with your state and local bar associations to see if they’re running an honest operation. While this isn’t a sure-fire way to keep from getting burned, you can at least see if he or she has any pending investigations. You can ask your friends or family members if they know someone who can help you, and of course you should always do your own research to see if the information you’re being given is accurate. Be sure to shop around before you make your decision. Look in the phone book to see who is working in your area, and there are a number of online resources as well. Be sure to contact as many people as you can, and compare their rates, so you can find the best price for your budget.
You also have to remember that not all tax attorneys are created equal. In other words, one might only specialize in one type of tax law, while another might focus on another. So, you need to be clear on what your problems are, and you need to find the right person to help you. If you continue to ignore this problem, it could cost you thousands. That’s why it’s important to act as soon as possible. Consider going to GLG Accounting for all your tax needs. Are you ready to discuss your gift and estate tax planning needs? Reach out and speak with one of our highly skilled accountants today.
Please Contact GLG Accounting at any time for your professional accounting solution. GLG Accounting is located at Address: 400 Central Ave, Suite 340B, Northfield, IL 60093, USA
Phone: 312-754-9377 Email: contact@glgaccounting.com
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