WHAT TO DO IF YOU CANNOT PAY YOUR TAXES
If you're financially unable to pay your tax debt(s) in full immediately, you have a few options.
First. Be sure to file ALL tax returns (even prior years' unfiled retuns) to avoid or minimize late filing penalties and interest charges.
When you file, send in as much as possible with the return to limit penalties and interest charges.
INSTALLMENT AGREEMENT
If you're eligible, you can request to make monthly payments with the IRS through an installment agreement.
This can be done online at the IRS website www.irs.gov or by filing Form 9465 Installment Agreement Request with the IRS.
You may also need to file From 433-F Collection Information Statement as well.
Before applying for an installment payment agreement, you must file all required tax returns.
The IRS generally charges a fee to enter into the agreement and also charges interest on unpaid balances until the tax debt is paid in full.
OFFER IN COMPROMISE
Another option may be and Offer In Compromise which allows you to settle your tax debt for less than the full amount you owe.
Before filig an offer in compromise, you will want to make sure you are eligible.
You can use the IRS Offer In Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal or consult with a tax professional as well.
You'll find step-by-step instructions and all the forms for submiting an Offer In Compromise in Booklet Form 656-B.
You may submit to pay either a lump sum payment or periodic payment offer.
The IRS charges a $185 application fee and an initial payment for an offer in compromise.
BEWARE OF OFFER IN COMPROMISE SCAMS
Many TV ads feature firms who tell you you can "settle for pennies on the dollar".
Often it is not as easy as they make it seem.
It pays to do your homework anad research before using their services.
CALL NOW 561-746-1926 or 561-339-8102 if you have any questions or concerns or would like to schedule a FREE, Confidential, N0-Obligation Tax-Saving Consultation.