Once you fall behind on your taxes, it can be incredibly difficult to catch up. If you owe a significant amount of back taxes, a tax payment plan might be a good option for you. But, the U.S. tax code is notoriously complicated. If you are negotiating a payment plan with the IRS, a tax professional can help you obtain the best deal for you.
While the IRS does not always agree to allow you to pay back taxes through an installment plan, owing a large amount of tax gives you a basis to request a payment agreement. As a matter of course, if you owe more than $50,000 in tax debt, the IRS should allow you to pay it off over 72 months. Naturally, however, the federal government will require you to pay interest and fees, which might be as high as eight or ten percent.
To qualify for a tax payment plan, though, you must prove that you are current on this year’s taxes and that you have filed all required tax returns. You also must establish eligibility for an installment agreement by convincing an IRS agent that you meet certain requirements. Typically, this requires showing a willingness to pay at least your monthly income minus any necessary living expenses.
Tax professionals understand tax law and IRS trends. Because of this, they know how receptive the federal government might be to accepting your payment agreement or, perhaps, to reducing the amount of tax debt you owe. By contrast, as a single taxpayer, you have much less experience dealing with the IRS and probably know very little about tax law.
Don’t let your lack of expertise damage your chance of obtaining a tax payment plan. A qualified tax professional can be a great help in negotiating your payment agreement. For more information contact Uncle Phil’s Tax Advice at (855)829-8477 or visit http://askunclephiltaxadvice.com/. You can connect with them on Facebook for latest updates!
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