Installment Agreements Can Help with Back Taxes

Installment Agreements Can Help with Back Taxes

Back taxes aren’t a problem that will just go away if you ignore them long enough. Sooner or later they’ll need to be paid, and the sooner you resolve the matter, the less money you’ll ultimately have to pay. The longer the debt remains, the more fees and interest the IRS attaches to the original sum until what started out as a relatively small amount has become financially unmanageable for you. The amount of interest that can be attached to back taxes is outrageous.  https://www.irsmedic.com/ is place to get all needed help! The debt collectors that purchase the back tax liens from the IRS routinely attach an 18% interest rate to the total, though there have been reports of debt collection agencies charging anywhere from a 20% to 50% interest rate.

Guaranteed Installment Agreements

Even though it might seem like the IRS is a force unto its self and that they can do whatever they want, they’re really not. There are laws in place that restrict the actions the IRS can and can’t take with regards to collecting back taxes. You can make some of these laws work for you. Best tax attorney in connecticut for you!

When you contact a tax attorney for help with back taxes, you’ll learn that as long as the current amount you owe is $10,000 or less, the IRS has to agree to let you create an installment plan. In order to automatically qualify for this installment plan:

  • You have to be able to pay off the balance of your back taxes in at least 36 months
  • This is the only installment plan you’ve created with the IRS in five years
  • You’ve filed all of your tax returns
  • You not only resolve the matter of your back taxes on time, but you also file all of your future tax returns on time

How Your Installment Payments are Calculated

The IRS has a pretty good method for working out how much your monthly payments will be. They simply take the balance of what you owe and divide it by thirty-six. Once you enter into an installment plan with the IRS, it’s crucial that you make each payment on time.

Why You Should Take Advantage of the Guaranteed Installment Plan

Any good attorney you’ve enlisted to help with back taxes will tell you entering into the guaranteed installment agreement with the IRS is a very good idea. The best thing about the guaranteed installment plan is that once you’ve entered into it with the IRS, they will not be able to take the steps to ile a federal tax lien against you, so you won’t have to worry about the tax debt having a negative impact on your credit history. Click for source.

What if You Owe More than $10,000

Don’t assume that just because you owe more than $10,000, you won’t be able to get help with back taxes. You can.  Programs the IRS has created to help with back taxes of larger amounts include:

  • The Streamline Installment Agreements for those who owe between $10,000 and $50,000 worth of back taxes
  • Non Streamlined Installment Agreements for individuals who owe more than $50,000 in back taxes

If you receive notification from a debt collector regarding outstanding back taxes, the best thing you can do for yourself is to seek help with back taxes from an experienced tax lawyer. Not only will the attorney help you understand how to set up installment payments, they will also mediate between you and the IRS to get the amount of fees and interest connected to the back taxes decreased.

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