The Internal Revenue Service (IRS) states that individuals are able to make monthly payments through a tax debt settlement known as an installment agreement if they are unable to pay the full amount of the debt in one payment. However, those who are able to pay at one time will reduce or completely eliminate both the number of penalties, the fee to set up an installment agreement and the total interest on the debt. Before you apply:
-File all required tax returns;
-Consider other sources (loan or credit card) to pay your tax debt in full to save money;
-Determine the largest monthly payment you can make ($25 minimum); and
-Know that your future refunds will be applied to your tax debt until it is paid in full.
If you need reliable IRS tax debt settlement help in Los Angeles, contact our attorneys at Bismark Tax. We have the experience and the skills to help you file for and establish and installment agreement so that you may pay off your back taxes without leaving you homeless.
Some individuals may need additional relief and seek a knowledgeable attorney to aid them in the process. Oftentimes, if you are unable to settle your back taxes, you may be faced with serious consequences and find yourself bankrupt.
In order to avoid this, many taxpayers seek IRS tax debt settlement help to set up a payment plan instead. The process is relatively simple: you must file all of the required tax returns and consider other income sources such as credit cards or loans in order to pay off your debt in full and save yourself money. However, if you find that that simply is not an option, you should determine the most you can pay every month until the balance is paid off.
Keep in mind that although you may have a current installment agreement in Los Angeles, every subsequent tax return you file will be put towards paying off your tax debt until it is covered in full.