IRS offers taxpayers different choices to pay their late taxes. If you don’t have the budget to pay your tax debt in full Installment Agreement could be the solution. Internal Revenue Service likes to collect their money as soon as they can. When they notice you don’t have the money or the funds to make the necessary payments they will come up with a different solution. You want to set an installment agreement wherein you can pay on a month-to-month payment. Keep in mind you have to be qualified first before you can take advantage of it. The IRS is responsible for collecting you past due and they are responsible for giving you the approval in each case.
When filing the necessary forms you have to write few facts about you living condition. This includes monthly rent, utility, phone, etc. You may also hire Bellaire Tax Services to handle these cases to ease your situation with IRS.
Installment settlement expenses
There is a cost related to the filing the forms in which is $52 or $105. This may depend on the kind of settlement you’ll select consisting of direct and non-direct debit. If you have income underneath poverty, you will be qualified to pay for $43. At the same time if you are above this line you will be in the original category of 52$ or 105$. You want to pay as much as you can as fast as you can. IRS taxes are not interest-free, and you may pay up to 4% interest on your debt.
IRS will come up with an installment settlement after you meet the necessities given rules:
- If you have a tax legal responsibility less than $10, 000 without the interest.
- You must have filed taxes for the past 5 years and did not claim settlement agreement in those years.
- If you haven’t file taxes, you are responsible for filing the last 3 years at the same time.
- When the IRS requests any documentation and proof you must submit all requested document
- If you have the ability to pay your taxes in full without installment if required.
Steps in making use of for an installment agreement
If you have a tax debt less than $50, 000, there are a diffusion of methods available that can help you apply for the installment. Nonetheless, you may not apply for these when your account goes to collection. When you have a tax liability less than 25, 000, you need to fill out the form 9465 along with tax return.
Our office is dedicated to helping you with your tax situation every day. We believe in being the best tax service Houston can offer.We handle thousands of customer yearly and help them to overcome the difficulties with IRS. Call us now 713-384-9432