|
  |
|
|
When Installment Agreements are Necessary in Managing your Tax Dues
By Darrin Mish
After people have filed for their annual tax return, they realize that they owe the IRS a substantial amount of money. What makes matters worse for them is recognizing that they don't have sufficient funds to pay for all these tax debts. Good thing that this kind of IRS issue is made much more manageable because of the availability of a number of options for the taxpayers. Setting up an installment plan is among these options. The IRS actually allows you to set your monthly due and the date that it has to be settled in your request for an installment plan. In fact, your chances of getting an approval for this increases when your tax bill does not go over $10,000, have been a diligent taxpayer, and have proven that you don't have that much money available. Among the primary concerns of this set-up is the assurance that your terms will allow you to fully settle your debts within a 3-year period. Applying for one is as easy as filling out Form 9465 (Installment Agreement Request Form) and attaching it to your tax return. Taxpayers who are truly financially strapped are also given the option to make partial payments of tax liability. This is a slightly different, but still an installment plan nonetheless. Taxpayers who decide to pursue a partial payment installment agreement are requested to give specific financial details such as information regarding equity assets. Because the IRS will verify all the data provided, it is always in the best interest of the applicants to make sure that everything is accurate. Also, to check if you are already in a better financial standing and to see if partial installment payments are not anymore necessary, the IRS will conduct a re-assessment every two year. In addition, the IRS has the option of increasing your monthly payment or terminating the agreement altogether. The disadvantage of installment options, however, is the fact that you will be made to pay more money to the IRS the longer you stretch your payment agreement. In installment plans, you are actually buying time from the IRS to pay for what you owe them. These options also don't go without costs. The IRS charges you with a one-time amount of $105 for an approved installment plan. The fee is lowered to $52 when you choose a direct debit agreement, which requires you to debit monthly payments from your bank account. The fee even goes to as low as $43 is you meet the criteria for the lower income bracket. Some people may take installment plans as an attractive option but other taxpayers feel differently. For them, the more practical solution is an Offer in Compromise, or OIC, which allows them to lessen their total tax dues as the remaining percentage is forgiven. Keep in mind, however, that if IRS problems reach to the point where there is already a need to make use of the options mentioned above, it is now time to seek professional assistance regarding this matter. |
|
 |
|
PLEASE VISIT THE CONTRIBUTOR'S WEBSITE
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "When Installment Agreements are Necessary in Managing your Tax Dues" has been specified by the contributor as:
All Rights Reserved
This content may not be copied, distributed or adapted by anyone under any circumstances.
|
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
