Dealing with tax problems can be about as enjoyable as a root canal, but filing and paying taxes are necessary. This is true even if you are unable to pay the amount due immediately.
One of the options the IRS and Colorado Department of Revenue offer to taxpayers who are unable to pay their tax balance in full immediately is an Installment Agreement. Essentially, this is a payment plan that allows you to pay off your tax balance by making more manageable monthly installments, rather than paying the balance in one lump sum. This can be a financial lifesaver when facing tax problems.
Why consider an Installment Agreement?
By setting up an Installment Agreement, you show the IRS that you are actively working to pay your debt voluntarily. Being in an Installment Agreement helps stop the collection notices issued by the IRS and can also help you avoid more severe consequences like wage garnishments or levies of the funds available in your financial accounts.
How to Apply for an Installment Agreement
Applying for an Installment Agreement with the IRS can be a straightforward process. If you meet the criteria to do so, you can set up an Installment Agreement online, by telephone, or by mailing in a form. Not all tax problems or balances are eligible to set up an Installment Agreement this way and some require more attention to ensure it is established correctly and completely.
Eligibility Criteria
Not all tax balances or taxpayers can use the online or telephone options to easily set up an Installment Agreement. These options have certain eligibility requirements that you must be aware of and meet to apply in this way. To take advantage of the online and telephone options, you generally need to owe $50,000.00 or less in total. This includes the combined amount of tax, penalties, and interest, and you must have filed all required tax returns. If you owe more than $50,000.00, there are still options available, but they generally involve more paperwork, knowledge of tax laws, and negotiations.
An Installment Agreement can be a great way to tackle your tax problems and balance. It offers a bit of financial flexibility and while in place can help keep you protected from further collection efforts from the IRS or Colorado Department of Revenue.
For help navigating your tax problems and negotiating a resolution, contact the experienced tax team at the Business Law Group. Our team is ready to help you by taking the burden of dealing with the IRS and helping you navigate your tax problem to find a resolution tailored to your situation. Call us at (719) 355-8840 or email info@businesslawgroup.us to get started today.
