If you owe unpaid taxes, the financial ramifications can be severe.For example, the Internal Revenue Service (IRS) possesses the legal authority to inflict large penalties on individuals and business owners who pay their taxes late. The IRS can also require you to pay accrued interest or even seize personal or business assets to recover on the amount owed. If you are staring at a large tax penalty and need help, contact Anderson Bradshaw Tax Consulting. Our team of tax relief professionals are ready and able to help you tackle your unpaid tax issues head-on.
Overview
A tax penalty settlement is a formal agreement with the IRS whereby the agency agrees to extend the period in which you must pay back the taxes owed. This payment plan will allow you to avoid receiving multiple notices concerning federal tax liens and tax levies.
When it comes to negotiating a tax penalty settlement, it is recommended to try and pay as much upfront as you can in order to avoid further penalties and interest on the taxes owed. Keep in mind,any tax refunds will also be applied to the amount owed until the total tax balance is paid in full.
If you can pay the taxes owed within 180 days from the tax due date, you should opt for a short-term payment plan. If you are unable to pay the taxes owed in full within 180 days, you should consider applying for a long-term payment plan. The long-term payment plan requires monthly installments and must be paid within 72 months (i.e. six years).
Online Payment Option
Depending on your circumstances, you may be able to easily set up a tax debt payment plan through an online portal. Generally, if you owe less than $25,000 in unpaid taxes, you will likely be able to apply for a payment plan online.
Eligibility
To be eligible for a tax penalty settlement where you obtain tax debt relief by potentially agreeing to a settlement amount lower than the total amount owed, you need to take the following actions:
- File all tax returns you are legally required to file,
- Make all required estimated tax payments for the current year, and
- If you are a business owner with employees, make all required federal tax deposits for the current quarter.
- You are not currently involved in bankruptcy proceedings.
Fees
It is important to note that there are fees associated with a tax penalty settlement. The IRS typically charges user fees for setting up an installment payment program. Though, the IRS may consider waiving these fees if you are a low-income taxpayer and you agree to set up a direct debit plan whereby payments are issued directly from your bank account.
If you are in the midst of a tax penalty settlement with the IRS, you can learn more about your rights and responsibilities by contacting an experienced and qualified tax professional.
Have Questions About Tax Penalty Settlements and Tax Debt Relief? Contact Anderson Bradshaw Tax Consulting Today
The tax relief consultants at Anderson Bradshaw Tax Consulting can help with any tax situation, including negotiating a tax penalty settlement with the IRS. The tax professionals with our firm possess over 30 years of experience in the industry. As a result, we have seen almost every tax issue and have learned the best ways to handle each situation.
For further information or to schedule a consultation, please contact Anderson Bradshaw at 877.550.3911 or visit www.AndersonBradshawTax.com to learn more.
