Ok so after preparing your return, and double checking you have been able to claim all legal deductions you find that the amount you owe is so large that even a payment extension will not allow you enough time to pay the amount. Not a pleasant situation to be in, but you certainly are not the only one to be there.
Many in this situation may put of actually filing the return because they feel there is no possible way they can deal with the tax burden they owe. As a consequence they make the situation worse by delaying any proactive action and accumulating additional interest and penalties. Or they chose the to file, and fail to pay anything because they cannot pay the full amount. In time the IRS begins collection activities including harassing phone calls, letters which can lead to a slew of problems including liens on your property, bank account levies and wage garnishment.
Fortunately again there is a way to resolve this situation without getting into further trouble with the IRS, and it has a name – the Installment Agreement.
The Installment Agreement allows a taxpayer to pay the amount they owe over time with a predetermined monthly payment or Installment. Of course the IRS always prefers to get their money as fast as possible and as such IRS agents can be less than forthcoming about programs such as the installment agreement. Also the IRS does not... ...read full post