We live in a pay as you go tax system. If you are a W2 employee, your taxes are taken out with each paycheck. If you receive 1099s or own a business you should make estimated tax payments quarterly. However, things do not always work out this way. This year we have an expected 28-million taxpayers who will owe for the 2015 tax return. What can you do if you can’t afford to pay? Well, an ETP might be a great option for you.
Do you need a little more time to gather the money?
If you are unable to pay your IRS balance by the due date and have received a notice of deficiency or similar notice, you may be eligible for getting an extension of time to pay. That’s right! There is a program out there that gives you a FOUR MONTH EXTENSION TO PAY!! If you need a little more time than that, this may still be a good option for your situation. Using an ETP along with another alternative arrangement to start streamlining payment arrangements could be just the tool you need to resolve your IRS balance.
Pros of using an ETP
Important!
Keep in mind this does not stop the interest and penalties from hitting your account, it just provides you some extra time to get the balance owed. Sometimes taxpayers would rather pay around 4% just to have some breathing room. Also, after you get the balance down, if your record is clear for the last few years you may be eligible to abate some of the penalties.
If you have questions about this or other alternative arrangements on an IRS or State bill, please feel free to call (410) 727-6006 or click the below button to discuss your eligibility.
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