Options for Las Vegas taxpayers dealing with tax debt
No Las Vegas resident wants to find themselves in debt with the IRS, but occasionally it can happen. Fortunately, there are options when facing tax debt, because simply not paying could result in wage garnishment, tax liens or even criminal charges. A difficult debt situation doesn’t have to be overwhelming. With the right guidance, tax debts can be taken care of with little to no hassle.
The IRS is often willing to work with taxpayers. Requesting additional time to take care of the debt could grant a person up to an extra 120 days for payment. When extra time is granted, it is important to remember that this does not allow for installment payments and the full amount will need to be paid within the time allotted.
However, the IRS does grant installment requests in some situations. If paying the debt in a lump sum is not a feasible option, taxpayers can apply online to request the installment plan if they meet certain requirements. Those who owe over $50,000 must complete a Form 9465-FS and drop it in the mail. A financial statement must also be provided to the IRS. There are different types of installment plans, but depending upon the one used, it could grant a person an additional six years to pay back what is owed.
Taxpayers could also pay the debt by credit card or even request a private loan to take care of it. But some people may not be able to afford the debt, even if they are allowed to make payments. In cases where this happens, a negotiation may be the best thing to try. This may require knowledgeable help because the laws can sometimes be confusing for consumers. If negotiations are successful, it could result in a much reduced tax debt bill and a sigh of relief from the Las Vegas resident required to pay.
Source: Forbes, “5 Things To Do If You Can’t Pay Your Income Taxes,” Nancy Anderson, Feb. 21, 2013