Facts Pertaining To IRS Payment Plan In Duluth And Dunwoody, GA

Posted by AmgdKIbraheemCPA on February 22nd, 2021

It is natural to be alarmed about receiving a letter from the IRS. Having to prepare for an impending Audit or pay the IRS its due requires specific expertise. Trying to have everything ready before the due date can affect one's mental status by placing the individual under constant anxiety. The best way of paying the Government its dues would be to contact a professional taking advantage of the best IRS payment plan in Duluth and Dunwoody, GA.

It is essential to file all documents before the last date, however. Failing to file in time will result in a penalty that adds to the existing financial burden. The professional would advise the client about finding an alternative way of clearing the pending amount with the IRS. The available options before a taxpayer who is unable to afford to pay the IRS include the following:-

· Extension- Individuals who have never missed paying their dues or requested an extension before are eligible to seek an extension. Filing of forms without paying the required amount will have the IRS contacting the concerned individual. The authorities will give the provision of paying the entire amount within the next 120 days along with an additional amount of 0.5% of the existing amount charged as a fee.

· Partial Payment- It is a good idea to pay as much as possible to keep the dues low enough to be affordable with the penalty being reduced substantially. The certified accountants warn of paying a partial amount to the IRS via the credit card, though. This will only result in additional interest on the credit card payment causing the credit rating to drop appreciably.

· Installment Plan- Financial experts recommend requesting paying in installments. The only thing one has to do here is fill up the IRS Form 9465, also known as an "installment agreement request." This needs to be sent to the IRS at the same time as filing the tax return. The IRS will formulate a plan with the entire amount being paid off in 6 years. The payment will also include a setup fee that needs to be paid within the specified time.

The IRS is under no obligation to accept all installment applications, however. One may have the application refused when the concerned taxpayer:-

Lives extravagantly – With hefty credit bills incurred regularly and the family's children attending pricey private institutions, the lifestyle is not in keeping with the income in such cases causing the IRS to feel concerned about timely repayment.

Provided false information – The IRS is not impressed to find incorrect information in Form 433-A (Collection Information Statement). This is a clear indication of the concealment of facts.

Defaulted Previously- The second application for installment may be rejected when the concerned individual failed to meet a similar commitment in the past.

It becomes essential for business owners to hire a competent international accountant in Duluth and Dunwoody, GA, to learn about the applicable taxes when the companies or their branches are located outside the country.