The Irs Solution If You Cannot Pay Your Taxes

The IRS Solution If you​ Cannot Pay Your Taxes
The Internal Revenue Service wants you​ to​ pay taxes on​ time .​
That being said,​ it​ understands this is​ not always possible and has created a​ program for such situations.
The IRS Solution If you​ Cannot Pay Your Taxes
The Internal Revenue Service is​ very upfront about its goal in​ dealing with taxpayers .​
While it​ obviously wants to​ collect all taxes due,​ it​ is​ also focused on​ keeping you​ in​ the​ system .​
This attitude is​ a​ relatively recent change undertaken in​ the​ 1990s .​
The IRS essentially determined it​ made better financial sense to​ have you​ in​ the​ system versus spending hundreds of​ man hours hunting you​ down .​
In practical terms,​ this means you​ need not have a​ panic attack if​ you​ do not have sufficient funds to​ meet your tax obligation .​
If you​ panicked this past tax deadline,​ there was no need .​
The IRS will put you​ on​ a​ payment plan if​ you​ cannot pay your taxes on​ time .​
The plan calls for monthly payments like a​ car loan,​ to​ wit,​ they are an​ equal amount each month so you​ know what you​ are obligated to​ pay .​
You are only eligible for a​ payment plan if​ you​ file a​ tax return .​
Once you​ file,​ you​ want to​ use form 9465 to​ request the​ payment plan .​
It costs $43 to​ file the​ application .​
The IRS will then get back to​ you​ on​ what it​ is​ willing to​ do .​
The payment plan process is​ not an​ audit .​
Millions of​ people apply each year and the​ IRS considers it​ standard operating procedure .​
No red flags are raised when you​ file the​ application .​
To the​ contrary,​ the​ IRS tends to​ view you​ as​ an​ honest tax payer since you​ are acknowledging the​ full amount due and trying to​ find a​ way to​ pay .​
Importantly,​ the​ payment plan should be viewed as​ a​ means to​ buy time .​
Making the​ monthly payments will eventually pay off the​ debt,​ but it​ will take years .​
Interest on​ the​ amount you​ owe will also continue to​ accrue .​
The best strategy for using the​ plan is​ to​ make the​ monthly payments while saving up money to​ make a​ lump sum payment to​ satisfy the​ debt.
If you​ cannot pay the​ taxes you​ owe,​ do not panic .​
The payment plan option will keep you​ out of​ trouble with Uncle Sam.
The Irs Solution If You Cannot Pay Your Taxes The Irs Solution If You Cannot Pay Your Taxes Reviewed by Henda Yesti on July 04, 2018 Rating: 5

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