Can You Get an Installment Plan to Pay Tax Debts?

If you find that you owe a tax debt to the IRS then you are probably wondering what your options are, and whether the IRS will allow you to use an installment plan in order to pay what you owe. Taxpayers who owe a tax debt of $50,000 or less are normally approved for a 72 month payment plan without any problems simply by asking for this option. If more than $50,000 is owed then you will need to provide the agency with your financial information and do some negotiating.

The Profound Effects of IRS Issues

Many of us do take tax issues lightly. We tend to believe that like all the other debts, we can just choose to ignore them, hoping they will go away in time. We never exert any effor to at least reach out to the agency and tell them we would like to come up with a compromise.

Basic Information about Income Tax Credits

Income Tax Credits are actually much better for tax payers than income tax deductions. While income tax deductions can lessen your taxable income, income tax credits reduce your tax bill directly. In rare cases, the IRS even ends up paying the tax payer. However, the rules of income tax credits are tricky. Not everyone qualifies for this. You need to be sure that you are actually eligible for credits on your income tax return before filing them. Otherwise, you might have to face fraud charges later on.