If you saw tax day come and go, but didn’t settle up this year because you just don’t have the cash, now is the time to act. The IRS is like any other creditor (except more aggressive), they want what they are owed. Rather than putting it off and waiting for aggressive Levy Notices from the IRS (which will certainly come), be proactive and take action immediately.
The longer you continue to look the other way, the more interest and penalties will accrue, and you will be digging a much bigger hole for yourself. The good news is that we know how to help you get right with your IRS debt. We can help you take control of your tax debt with an Installment Agreement( IRS payment plan) today so you can start working your way out of the red.
At Onyx Tax, we can help you get started in four steps:
1.File your Taxes
Step One: File on time. The penalty for not filing your taxes on time is considerably higher than the penalty for not paying. The late filing penalty is 5% of the unpaid tax every month that it is late, with a cap at 25%. The failure-to-pay penalty is one half of one percent—0.5%—for each month the tax goes unpaid. So, even if you can’t pay the total balance…file!
2.File an Extension
If you are under the gun and need additional time, file an extension. An extension gives you until October 15 to timely file. This does not extend your time to pay, but will help you avoid the 5% late filing penalty.
3.Set up a Payment Plan With the IRS
If you don’t have the resources to pay the balance in full, we can help you create an IRS Installment Agreement (payment plan). There are different types of plans and your plan will depend on factors like the dollar amount owed and your financial ability to pay. But, with whichever type of payment plan you set up, as long as you continue to make your payments according to the agreement, the IRS can’t levy your bank account or garnish your wages like they could prior to entering into the agreement.
4. Review Other Options with an Expert
Before establishing a payment plan with the IRS, it’s important that you understand all of your options. It’s possible that your situation may be better suited for a different option. For example, if own very little assets and make below a certain income level, the IRS might be willing to accept less than the total amount owed via a program called the “Offer in Compromise” (OIC). The OIC is a program that can save certain taxpayer’s a ton of money. But, the program is complicated and the first order of business is for us to determine whether you qualify.
If you aren’t sure how to navigate your situation, then make sure you have someone in your corner who does. The IRS has experts on their side; you should too. Contact Onyx Tax today and let us help you develop the right plan for you!