If you owe money to the I.R.S. but are unable to pay, it’s important to contact a tax attorney before it’s too late. Every year a large number of Americans fail to pay their taxes because they don’t know about the alternative options provided by the I.R.S. However, failing to fulfill your tax return obligations can lead to serious fines and penalties.
The I.R.S. has several options for people who are unable to pay their taxes due to financial hardships: An Offer in Compromise, and payment plans, or installment agreements. An Offer in Compromise allows you to pay for less than you owe. Of course this is a great option, but it has strict requirements and not everyone qualifies. If you don’t qualify for an Offer in Compromise, you can request a payment installment, or payment plan.
According to the I.R.S. website, it’s important to complete the following tasks before applying for a payment plan: file all required tax returns; consider other sources to pay your debt; determine the largest amount you can pay each month; know that your future refunds will be applied to your tax debt.
A payment plan is a great option for people who are unable to pay their tax debt in full and who have exhausted all other options. However, applying for a payment plan is easier said than done. How do you apply? Which forms do you need to submit? Does the I.R.S. need proof of your financial hardship? Instead of requesting a payment plan on your own, consider hiring a California tax attorney.
If you owe back taxes and need to get setup on a payment plan, a tax lawyer can assist you. A trained and experienced attorney can help you apply for an installment plan that meets your needs and budget. The attorney can help you complete the proper paperwork. In addition, the lawyer can provide you with helpful information about payment plan installments with the I.R.S., such as how much it will cost and whether the agency can still file a Notice of Federal Tax Lien.
In order to get the best payment plan for your unique financial situation, make sure to have your case evaluated by a professional. A professional lawyer can tell you if you qualify for a payment plan. The same type of lawyer can also help you with the offshore voluntary disclosure program, a criminal investigation, or I.R.S. wage garnishments.