4 Quick Steps When You Owe The IRS

What do I do when I owe the IRS??Here is the Nealson Group’s easy 4 step process.

If it turns out you owe this year, I am sorry, but please don’t panic.?If you are strapped for cash, and unable to financially pay your tax debt when you file your return, there are options.

Step 1 – Get caught up

File all your tax returns.?I know it sounds crazy, but some people actually “forget” to file a year or two of their returns.?The IRS will not set up any kind of payment arrangement until you have filed all your tax returns.

Step 2 – Assess your situation

How much do you owe??For most people, it is a few hundred or thousand dollars for other’s it’s a lot more.

Do you really owe??Did you do your taxes yourself or did you go to Certified Public Accountant (CPA)??You might have made a mistake, fat fingered a number somewhere, so I would get a second opinion before you start writing a check to the IRS.

How much time do you need to pay??Depending on your circumstances you can request additional time to pay.?Usually, the IRS will grant 60 to 120 days.?You can click the link below, contact the Nealson Group, or call the IRS at 1-800-829-1040.?Thanks to budget cuts at the IRS, you can expect to wait 30 minutes to an hour before you speak to an agent, so be patient.

Do you have room on your credit card? This should be a last resort if you owe a great deal of money.?However, if your liability is small, the interest you pay on the credit card might be lower than the interest and penalties you will pay the IRS, and you could earn the points, miles, etc.?But again, last resort.?Keep reading.

Step 3 – Contact Uncle Sam to set up a payment agreement – this also works for businesses

If you owe less than $50,000, which includes the tax liability, interest, and penalties, you filed all your returns (See Step 1), and your total outstanding liability is less than $100,000 you may qualify to set up an installment agreement.

The easiest way to set up the agreement is to click the link below, or contact the Nealson Group, or you can call the IRS direct at 1-800-829-1040.

Here’s what you need:

· Name

· Valid e-mail

· Address from you most resent filed tax return

· Your date of birth

· Filing Status of you most resent filed tax return

· Your SSN (or your spouse’s if you filed jointly) or your ITIN

Note: If you normally file married filing jointly the IRS’ computer system will only take the SSN of the person that appears first on your tax return.

If you are approved by the IRS for an installment agreement there is a one-time user fee of $105.00 or $52.00 (verify they haven’t gone up) if you give the IRS permission to deduct the payments directly out of your bank account.?We do not recommend giving the IRS direct access to your bank account.?Not for any other reason than they are human, and they make mistakes.?They could get it wrong and empty your account.?Could take months for you to get it resolved.

If your business owes $25,000 or less than you want to apply for an “IBTF-Expense IA” (In-Business Trust Fund Expense Installment Agreement).?Keep in mind you will have to pay down a bit of the liability before you can qualify, but if you have no other access to capital, this is a great option.?Contact the Nealson Group for more details or call the IRS at 1-800-829-4933 or the field office assigned to your case.

Optional Step 4 – Call in some help

If the notion of speaking with the IRS give you hot flashes or sweaty palms, then take a deep breath.?You do not have to contact them at all.?The Nealson Group can file a simple form and will speak to the IRS on your behalf.

Straight Talk

?If you owe the IRS, you have to take action.?This is a must!?Do not throw the notice in a drawer in the hopes it will go away.?The IRS will not go away, and they will only make your life a living hell.?So, use the following link, https://www.irs.gov/individuals/online-payment-agreement-application, or contact the Nealson Group.

P.S.?See IRS Circular 230.