How To Deal With The IRS And Tax Debt January 5, 2019 by admin

It isn’t as stressful as you might think dealing with the IRS and tax debt,especially if you have ahttp://www.spacecoastcommunitylawschool.com/tax-assistance-for-detroiters/ on your side. Although you will have to repay any back taxes you owe,the IRS does try to make that process as straightforward as possible.

Always file your taxes on time or request the applicable extension,even if you are going to owe money instead of getting a refund. A few weeks after you have filed your taxes,you’ll receive a written statement from the IRS outlining how much you owe and requesting payment. The entire amount can then be paid by the deadline indicated,or you can set up a payment plan for that outstanding amount.

The payment plan can be set up online,and allows you to specify a payment due date and monthly payment amounts. Once that’s established,you’ll receive regular statements and you have the flexibility to pay off the debt at any time,or pay more than the monthly minimum. Any taxes you owe when it’s time to file again the following year will be rolled over into that amount; any refund due will also be used to pay off the outstanding amount. Keeping up with payments or notifying the IRS of a late payment is important as they really do have the authority to take your car away or garnish wages.

It is possible to settle for less than the full amount if you owe back taxes,although the IRS doesn’t make it easy for everyone to do that. You’ll have to demonstrate that you just can’t afford to pay back the full amount and there are several different options available,making it worth talking to the IRS or a tax resolution services. And as a general rule,the IRS won’t take collection action on a tax debt that goes back longer than 10 years.

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