Title: Tax Payment Plan: Know Your Options Content: What is it all about? Tax Payment or perhaps the tax rescue plan is a very important thing to know about it. As its name confirms, it is something related to the tax. In this article, we are going to it more. However, our focus is towards the federal taxes and in the America, a body known as the IRS collects all Federal taxes. In case if you are a salaried person than you may not have encountered the IRS too often. However those who are self-employed or running sort of a business need to maintain a frequent contact with the IRS. What are Tax Debt and Tax Payment Plan? Tax debt in the simplest terms is that amount that you have to pay within a defined period. If you are paying your taxes on time, then there is no problem at all. While contrarily to this in case you are persistently failing in paying your tax dues, then your tax debt is growing more and more. The addition of penalties makes it more difficult to control tax debt. There is a possibility of having your debt grow from pennies to dollars within a few months. The Tax payment plan becomes a hope in such cases. It is an option provided by the IRS for individuals and business with a significant tax debt.
What are the Consequences of not paying? When it comes to the consequences, they are devastating. The IRS have the mandate to recover all their money that you owe to a period of ten years. Afterward, they can legally sue you as a defaulter. Most of the options that they use are similar to that which is being used by commercial banks. The consequences, however, are devastating. An individual may lose his home, his car, and other personal belongings. Such a proceeding against you is going to hit your credit history quite badly.