If you are like most Americans, COVID-19 has not been kind to your pocketbook. It’s no wonder so many of us are now facing tax debts that we need to figure out how to pay. While the IRS doesn’t have the best reputation with most Americans, they have tried to make an effort to help out with this problem over the last year and a half. Mark Dicus & Company is here to talk about what you need to do when you owe back taxes to the IRS.
How Long Does the IRS Give You to Pay Off a Debt?
Whether or not there is a pandemic that the country is dealing with, there is a process that comes into play what paying a tax debt. There are short-term payment plans and long term payments plans in place to help people out. Short-term payment plans include the debt being paid within the next 120 days. The long term payment plan allows people to pay the debt back over several years with a goal to have it all paid off within a maximum of 6 years. Most of the time, people can set up these payment plans on irs.gov.
How Does Taxpayer Relief Initiative Work
The Taxpayer Relieve Initiative works by extending the time that taxpayers have to pay off their tax debts. There are several ways they have accomplished this.
– Rather than 120 days, you have 180 days to pay off short term plans.
– If you owe less than $250,000 you can set up a payment plan either short or long term without having to show financial reasons why you need it.
– If you pay your payment using direct debit, you can adjust the payment amount as well as the due date.
– If you have a tax bill that is less than $250,000 from 2019, you may be able to qualify for an installment agreement without the IRS filing a notice of federal tax lien.
What Happens if I Ignore the IRS?
The biggest thing you need to remember when it comes to tax debt is that you are proactive. This problem isn’t going to go away without you making a move. The problem will get much worse if you simply try and ignore it. You will find that your fees will just continue to pile up when you go silent and choose to ignore the notice that you get in the mail. The IRS is trying to understand these trying financial times and are making an effort to work with people on the taxes they owe.
Small Business Tax Preparation, Filing, Planning, Bookkeeping & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you are struggling with your taxes and figuring out what you owe and what you don’t, you can rely on the professionals at Mark Dicus & Company to help you navigate the situation. Our trained tax pros know the ins and outs of dealing with the IRS and will do everything we can to get you any return that is owed to you. If you owe the IRS money, we will make sure you know what do to next. Call us today!