When you owe back taxes it can be tempting to avoid the problem all together, but that will usually only make the problem worse. It is often possible to avoid aggressive collection action by negotiating a payment plan, known as installment agreements, to pay your taxes over time.
If you owe the IRS less than $50,000, you should be able to get an installment payment plan for 72 months without providing financial information. State and local governments may have different policies, but are usually reasonable when the taxpayer is responsive and makes a reasonable offer.
It is important to consider all your options before agreeing to installment agreements. Although you can often avoid liens, levies and wage garnishments with installment agreements, it may not be your best option. When combined with penalties, the interest rate can be as much as 8 to 10 percent. It’s possible to pay for years and owe more than you when you started.
You can improve the chances of successfully negotiating installment agreements by working with a licensed professional that has experience negotiating with government agencies.
Podraza CPA can help you negotiate reasonable payment terms on back taxes.
Call today to find out how we can help you secure installment agreements to resolve delinquent tax issues.
Podraza CPA can provide expert guidance to help you qualify for and secure installment agreements to resolve delinquent tax issues.