Clear up Your IRS Debts By Opting For A Convenient Payment Plan

Many people today face the grim reality of owing money to the government in the form of unpaid taxes. Tax debt is a serious issue that can have dire consequences if not addressed and handled properly. Knowing your options is crucial to finding a resolution that is satisfactory to both you and the IRS. There are many ways to settle with IRS debt and get back on solid financial ground. In your option number one you can work out an agreement to pay your debt in installations. This works well to lower your upfront burden and spread your payments out a bit. So long as you owe less than $10,000, have not paid or filed late in the last five years, your plan will pay off your debt in less than 36 months, and you agree to continue filing and paying on time in the future.

• As a tax defaulter, you will be happy to know that IRS has opened a system where you can settle with the IRS debt by paying through simple and convenient payment plans. It is a plan like the home mortgage but the only difference is that instead of paying every month to the lender you have to pay the money to Internal Revenue Service. With the help of this plan, you can easily clear the tax debt and can take off big financial burden from your shoulders in an appropriate way. In order to apply for the plan you need to fill an installment payment form that you can download from the website that is authorized by the IRS. You can make a self-assessment for the monthly payments by simply entering the tax amount that you owe and the total amount of penalties and interest charges.

• The Internet is full of companies which are offering some of the most interesting debt packages saying they can settle for pennies on a dollars, settle with IRS debt, fast and quick settlements. While it is very possible, the odds are stacked up against you. Many of these companies that advertise pennies on dollars have a salesperson originally speak to you and size you up. They charge you a huge fee, take out a commission and then pass it on to a third party company or to the corporate headquarters where a spoke person who is working in your case has no idea of what to do that is why it is always recommended to go with self help websites as they are easy to understand, operate and that too without the need of paying extra cash to the advisors.

• You can find the mailing address on the website and can submit the form 9465 to it. You can choose a specific day in the month to settle with the IRS debt amount to IRS through the check, money order, direct debit from the account, or via credit card. However, it is important to know that you must submit the payment between the 1st and 28th of the month otherwise there can be some serious consequences.

How to Apply for The IRS Installment Agreement to Pay the Tax Liability?

In the event of not paying the tax on-time, you have an option to choose an installment agreement that will allow you to make back tax payments in monthly installments. You can apply for this agreement by using the form 9465 that has been issued by internal revenue service to help you for tax fulfillment. You can use the IRS payment plan form to request for the installment agreement if you do not pay the previous year taxes to the government. You can use this form to apply for the monthly payment options like a home mortgage to the bank or mortgage lender to clear the debt amount.

• In the IRS installment agreement, you are allowed to make payments within the 36 or 72 months periods. The 36 months payment period is known as a guaranteed payment plan and 72 months payment program known as a streamlined payment plan. You can opt for the guaranteed plan if you owe less than 10000 or equivalent and can choose streamlined for 50000 dollars of tax liability. By using the simple IRS payment plan form which is known as form 9465 you can submit the request online to the tax department and can start paying the debt in monthly installments after getting the approval.

• You are the eligible candidate to download, fill and submit the IRS installment payment form online if you have filed the income tax returns during the period of past 5 years and pay the due tax amount. Filling and submitting the form is a pledge from you to pay them back taxes with full sincerity to the internal revenue service and you should also need to mention the mode of payment through the direct debit from a bank account, with the money order and account payee check, or through the payroll deductions.

• After submitting the application for the IRS installment agreement by filing the IRS installment payment form, the department will assess your application upon receiving and let you inform in 30 to 60 days about the application that it has approved or denied. If your application has been approved then you will get a notice that will provide you with the detailed terms of the agreement and also the fee to submit. You will be noticed every month by the IRS about the balance left for the back taxes and the due date for the next payment. You will also get an annual statement for the payments you have made to the internal revenue service.

• You are also required to submit the form 433-F if the unpaid tax amount is equivalent to or more than 50000 dollars. It is a two pages form that will include the details of your job profile, income proofs, living expenses, and assets. It is used by the IRS to determine your financial capability to pay the due taxes that you have to pay with an installment agreement. Filling this form is necessary along with form 9465 to get easy approval from the IRS to clear the tax debt.

Burst the Tax Hardship by Filing The IRS Installment Payment Form.

Did you know that now you can pay your pending tax debt like mortgage or credit card payment? Yes, now you can clear the debt liability through an installment agreement program that is offered by Internal Revenue Service which is the federal tax department in the United States. According to the IRS, if you are unable to pay the full amount of your tax liability then you can choose an option to pay it in the form of easy monthly installments. However, the IRS will charge penalties and interest for late payments but it can make easy for you to pay the debt by dividing it into easy installments for the period of 6 years or 72 months. You can get the program approved with the help of an IRS payment plan form which is available on the website of IRS.

• You can relieve the financial hardship with the form 9465 by downloading it and complete it with filling the details. You can submit it to the IRS and should wait for a period of 30 days to get a response from the officials. If the IRS approves your request then you will get a notice that describes the terms and conditions of the agreement and asks for the fees due for request submission. The IRS will let you know about the penalties and late payment interest and will also describe the amount of tax debt that you have to pay in the monthly installments. 
• Filing the IRS payment plan form is an easy procedure as it consists of your personal details such as name, address, social security number, and employer’s name, etc. After filling such details you have to mention the tax debt amount, how much you are paying currently, and how much you can afford to pay each month, etc. You also have to mention in the form the number of months you require for paying your debt in monthly installments and also need to choose a date from 1st to 28th of every month for payout. Remember, you have to pay the debt on the specific date that you have chosen by mentioning in the form. 
• After filling all necessary details in the IRS installment payment form you should submit it online but before submission, it is good to get it checked by an expert tax consultant to avoid any mistake. By getting authentication from the tax department you can start the payout process every month and can reduce the tax burden month on month. You can also mention the mode of payment in the form to make it clear to the IRS about the payment gateway. You can use your credit card, automatic account debit, cash, money order, and payroll deduction for paying the debt.

It is vital to follow an honest payment agreement in order to make sure that IRS will not make you tax defaulter for breach of contract. It will cause you huge penalties by the officials that can put you in more financial crisis.