It is not uncommon for taxpayers to ask us this question each filing season. What I don’t do is advise them to call those 1-888 numbers that you hear about on television to ask for “IRS debt relief.” It really isn’t that difficult to work with IRS on an installment payment arrangement.
For individuals, if you owe less than $50,000 in taxes, penalties, and interest, and you’re not delinquent in filing any tax returns, you can qualify for what IRS calls an online payment agreement. This is where we find most of our clients fall, but there is an even simpler way to do it when the stakes are lower. Here is what IRS says about it.
For instance, most of the time, we see clients who owe $5,000-$15,000 to IRS. We have developed an IRS letter template, which we advise clients to send in with their first payment (when the returns are filed), asking for an installment plan. I have yet to see IRS turn anyone down for monthly installment payments of amounts in that range. It’s a pretty simple process, one with which we are happy to assist if the circumstances call for our help.
Guys, this isn’t anything to be embarrassed about. There are times when the tax liability comes out of nowhere and you don’t have any other choice. And honestly, you can’t run away from it…IRS will find a way to extract from you what you owe. So, what can we help a client with in this case?
Things to keep in mind:
If you find that you’re in the position of owing IRS, and you can’t pay it right away, don’t fret. Don’t hide your face in shame. Let’s figure out a way to work with them, together.
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