If You Owe Taxes, You Have Options on Paying…
The worst thing you can do if you owe taxes to the IRS is to do nothing. Recent changes at the IRS provide many new ways for taxpayers to pay the IRS or to settle with them over time. Most taxpayers panic when they can’t pay what they owe the IRS. They don’t realize you can make arrangements with the IRS to pay only what you can afford each month.
Some taxpayers are qualified for an IRS program which allows them to pay less than the amount they currently owe the IRS. Almost every taxpayer is eligible for some type of IRS repayment program.
Here are some of the ways to pay the IRS if you owe them taxes:
Pay by Installments
The IRS will allow you to pay your taxes over a period of time if you have no means of paying them now. They will require you to provide them personal financial information to prove that you can’t pay now.
You must remain current with future year’s taxes to avoid getting further behind. The IRS still charges you penalties and interest on your unpaid balance but a new law does reduce the penalty.
This is an easy way to start dealing with a problem that will not go away by itself.
Cut A Deal
You may be able to take advantage of the great IRS give away program designed to let taxpayers off the hook for tax debts. This is not amnesty but it’s the next best thing.
Taxpayers who qualify could easily find themselves settling with the IRS for pennies on the dollar. Every taxpayer that owes the IRS taxes must review the guidelines for cutting such a deal before they pay the IRS. Recently the acceptance guidelines have been relaxed even more.
Get Rid of IRS Penalties
The IRS assesses penalties against taxpayers for all kinds of reasons including failure to pay. It’s bad enough that many taxpayers can’t afford to pay the IRS in the first place but in addition they force taxpayers to pay even more with additional penalties.
All IRS penalties including “failure to pay penalties ” can be reduced to zero if you have what the IRS calls “reasonable cause.” Don’t be alarmed by the IRS term “reasonable cause” instead use it to your advantage.
Letters written to the IRS requesting them to reduce your penalties to zero should be written from the heart. Just tell it like it is, everybody has personal problems from time to time that cause us to forget about things like filing or paying our taxes.
For example sick kids, personal injuries, divorce, legal troubles, employment problems, moving issues and caring for relatives are all more important than dealing with tax issues. Writing a warm compassionate letter to the IRS requesting them to reduce your penalties substantially increases your chances of success. Include all the real life problems you were living with at the time the penalty was assessed. Don’t give up if they say no the first time!