Your Payment Plan Could Help Reduce Your Tax Burden
When the unexpected strikes, you need to have a plan for relief. I know that even the most careful individuals can't prepare for everything. Mistakes happen that can transform your financial life as you know it. When you need help, you can count on me to help determine which tax relief options are available to you.
Plan to Resolve Your Debt with Regular Payments
If you don't qualify for the Internal Revenue Service (IRS) Offer in Compromise Program, then an IRS payment plan may be the way to resolve your tax debt problems. IRS payment plans can be implemented so long as a tax debt is fully paid within a six year period.
Your payment plan could help reduce your tax burden and may include:
Monthly payments that must be paid in full and on time
Lower monthly payments that are customized to your budget and future income
Automatic withdrawal options
Setting up a payment plan with the IRS could give you a little more time to pay off your tax debts. Unfortunately, interest will continue to build on your tax debts. Yes, your debt may be slowly paid off in manageable increments, but interest will still be charged heavily on your outstanding balance. In addition, you should be aware that the IRS may charge you to initiate a plan. You are required by law to pay the interests, penalties, and fees on your tax debts, so it is wise to speak with a certified public accountant like me to determine if a payment plan is right for you at this moment.