Because Freedomtax’s staff has been providing tax debt resolution services, for 15 years, we know that getting a bill for owing taxes is never a good sign. Taxes are charged annually by the Government and are applicable depending on a person’s assets, their income and are also charged on businesses based on the nature of it since some services and goods have charges levied on them. However, if you owe taxes then you better be prepared to have a good back up plan to pay off your tax debt.
Owing money, especially in back taxes, is not an ideal situation for anyone but the IRS – International Revenue Services, monitors tax collection closely and no one wants to owe them anything. Renowned for their aggression and ruthlessness when it comes to tax collection, the IRS’s main concern is to get the money owed to them back in the shortest time possible. However, they do their best to encourage people who owe tax debts to still file for their tax returns and let them know about the situation.
Once a person lets them know about their tax debt, they are eligible to the following schemes that will help them pay back their taxes in a feasible manner:
Extensions to Pay Back Taxes
Depending on the state of your finances and the circumstances, the IRS may grant you an extension on the initial time period decided upon to grant you extra time that can allow you to gather more resources and pay off their tax debt. With timely move, this plan helps to save you from any further penalties or further interest on the debt.
Installment Plans for Tax Debt
The second option that can be utilized is the installment plan for your taxes. Depending on the amount owed, the IRS can work out a monthly plan with which can allow you to pay back the amount in a timely manner. However, people who opt for the payment plan are also liable for paying the interest, the penalties and the fees for setting up the agreement. If you default on a payment or in any way violate the terms discussed in the terms and conditions of setting up the installment plan, the IRS can choose to cancel the plan entirely.
In some cases, the IRS does not grant these options to pay off taxes and can seize your assets and other monetary sources of revenue. Although it is legally possible for them to do so, you can challenge their claim with the help of a reliable tax attorney. If you require any more information regarding tax debt payments and procedures, tax attorneys, accountants etc., please feel free to contact us at 407-344-1012 for more information. God Bless.