IRS Tax Help Payment Plan – How to Set Up a Payment Plan With the IRS on Back Taxes

Ok. Let's talk about how you owe the IRS back to a pay plan for the taxes you

accept. Malcolm C. of Lexington, KY, writes to ask me, how can he set up a payment plan with the IRS on the $ 19,000 tax debt.

- Tax Help

Let's review some of the facts, the first case:

1. Malcolm owes for two years 2003 and 2004.

2. All his tax return was filed.

3. He is not in the context of a recent survey / garnish.

4. He sees not owe business taxes, just personally.

Itit turns out, Malcolm claimed "exempt" on the W-4 for 2003 and 2004 to try to get some more money. And now the IRS wants their money. The IRS wants Malcolm to pay up to $ 753 per month for a payment plan. But he can only afford to pay up to $ 400 per month. What are his options? This is a very common scenario that I see over and over again with my clients.

Above all, you'll never get away with claiming exempt "on the W-4. Finally, you will always pay the bill (plus penalties and interest).In almost every situation, the extra money you is not exempt during the period just worth the effort and expense you'll see later. If the IRS wanted super technical about it, they could probably stick a criminal charge of tax evasion with the assertion that you knowingly and willfully make underwithheld on your taxes. But the chances of you still (let alone prosecuted examined) are in addition to the previously in a case like this. Bottom line: Just do not doit.

- Tax Help

SOLUTION: The best thing to do for Malcolm, is the IRS ACS (Automated Collection System) online course call 1-800-823-1040 and request a "Streamlined Installment Agreement." A streamlined installment agreement is available to all taxpayers as a matter of right, if you owe less than $ 25,000, have filed all your tax returns are, and only thanks to the personal income tax (no income tax debt) to. Streamlined Installment Agreement is calculated byYour total tax revenue (in this case $ 19,000) and dividing by 60 months. As Malcolm is looking at a monthly payment of about $ 320 to $ 325 per month over the next five years (60 months) that he can set up with the IRS ACS.

The advantage of a streamlined installment agreement is that the IRS will not levy or garnish as long as you are on the pay plan. It is another monthly bill and pay it simply for the next five years (it is actually a littleMore than 5 years since penalties and interest) are still benefiting. Now the IRS is reserves the right to file a Federal Tax Lien, even if you make payments to maintain their interest in the debt until it is paid in full, therefore, not be shocked if this is the case is. Remember, a lien and Levy are two different things. The lien is not your money, your wages, or your property. It is paid only on your credit report until the debt is.

You must also ensure that you remaincompatible for the future. Any breach of the contract is put in default, and then all bets are off. The IRS defines "compliance" in this case, ensure that all your returns filed in time) (usually by April 15 and that you are not running (all the new balances of all taxes are paid from April 15 for the previous year have).

http://www.taxhelp.pannipa.com/2009/11/18/irs-tax-help-payment-plan-how-to-set-up-a-payment-plan-with-the-irs-on-back-taxes/

IRS Tax Help Payment Plan How to Set Up a Payment Plan With the IRS on Back Taxes

By: kadinblog

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