Tax day, April 15, is just a few days away and if you are like many New Yorkers, you may be hoping to win the lottery before then in order to be able to pay your tax bill on time.
Believe it or not, you may not need a winning lottery ticket in order to make good with the IRS this tax season.
A tax payment plan, or an IRS Installment Agreement, is a great way for people who cannot afford to pay their tax debt to avoid getting into trouble — and more debt — with the IRS. Here is how it works:
After all your tax returns have been filed and your total tax debt has been identified, you may be able to negotiate a tax payment plan with the IRS. This typically involves reporting your monthly income and monthly expenses, which will allow the IRS to determine how much disposable income you have available.
Once this is known, you can arrange a more affordable monthly payment plan with the IRS in order to pay down your tax debt over a period of time.
Additionally, it is also possible to arrange a payment plan with New York state or your local municipality for state and local taxes that you cannot afford to pay.
How working with one of our tax attorneys can help
Although it sounds pretty straightforward, negotiating a tax payment plan with the IRS is actually a very detailed and complicated process. That is why you would benefit from the help of a skilled tax lawyer.
Your tax lawyer can study your financial situation in effort to negotiate a tax payment plan that you can actually afford to keep up with.
Our firm understands the state, local and federal rules and regulations that apply when it comes to reaching a tax installment agreement, and we can help you work out the best payment plan possible for your unique situation.
Call or contact our offices today for more information.