“I’m spending a year dead for tax reasons…” If this is you, I understand—but there is an easier way:
Tax-day has come and gone, and while many taxpayers can breathe a sigh of relief, there are just as many more individuals who will be receiving collection notices from the IRS any day now—not because they didn’t file on time, but because they simply can’t afford to pay all the money owed up front. If you are in this situation, I understand that instinct says to hide from the IRS, or “play dead,” until the storm has passed, but this is the worst thing you can do. Yes, the IRS is powerful, and yes, they can be scary, but if you just talk to them, chances are, they’ll work out an agreement with you.
For many Americans, making a deal with the IRS is comparative to striking a deal with the devil – It’s foolish! Dangerous! It’s just asking for trouble! But you would be surprised that, even if they aren’t the most warm and fuzzy American institution, the IRS is reasonable. There are real-life people working behind the green curtain, and each of them has their own bills to pay and stomachs to feed – if you just explain to them that your budget is tight and you need to make monthly payments instead of one mass one, they won’t deny you.
But if it’s that easy, many people wonder, why don’t more people do it? Well, for starters, you have to have a legitimate reason for needing an installment plan. Coming to an agreement with the IRS involves much more than a traditional handshake – it involves full financial disclosure on your part and much analysis on theirs. Not only will they determine whether or not you’re really strapped for cash, but they’ll want to get a good estimate of just how much you can afford to pay them each month. They will let you set the monthly amount, but if it’s too low, they’ll demand more, so you want to be sure to come up with an amount that works for the both of you.
Lastly, most people would prefer to clean out their bank accounts on April 15th and be done with the IRS for the next year than to have to deal with them every month for the foreseeable future. If you choose to do monthly installments, there is no telling how long you’ll have the IRS knocking at your door for. Just know that if you opt for an installment agreement, you’re opting to live with Uncle Sam until your taxes are paid off in full.
I understand that dealing with the IRS alone can be scary, even if you are trying to work with them, which is why I make it my job to help you. I don’t want taxes to be your undoing, and I don’t want you to play dead for a year – for support, and advice on how to apply for an installment agreement, contact my office today. http://www.irsallstar.com/our-services#5