I hope everyone had a fantastic Father’s Day! I had a particularly memorable one this year—not only did I get to celebrate with my father, but it was also my first Father’s Day as a dad. We marked the occasion with carne asada tacos, wine, and plenty of family cheer. In the spirit of celebrations, I also launched my new e-book last week, “How to Crush Your IRS Anxiety,” which many of you have already downloaded. Thank you!
But today, we’re tackling a topic that might be causing you a bit of stress: setting up a payment plan with the IRS. If you haven’t filed your taxes in more than three years, you might be feeling the heat. Well, let’s turn down the temperature and look at a cool solution that’s not only manageable but straightforward.
The Power of the Payment Plan
First off, understand this: the IRS would rather work with you than against you. They offer several payment plans, known as installment agreements, which let you pay off your tax debt over time. This isn’t just about giving you breathing room; it’s about providing a structured way to clear your dues without the overwhelming pressure of a lump sum payment.
Step-by-Step Guide to Setting Up Your IRS Payment Plan
- Assess Your Debt: Before you can set up a plan, you need to know exactly how much you owe. This is where filing those back taxes comes in. Without filing, you won’t have a clear picture of your debt, which is crucial for setting up your payment plan.
- Choose Your Plan: Work with a tax professional to determine what type of plan will work best for you.
- Apply Online: For most individuals, the IRS has made it easy to apply for an installment agreement online. This is the fastest way to get your payment plan in place, especially if you owe $50,000 or less in combined tax, penalties, and interest. Otherwise work with an Enrolled Agent to find strategies to reduce or eliminate this debt.
- Understand the Terms: Be clear on the minimum monthly payment you must make, and understand the interest and penalties that continue to accrue until your balance is paid in full.
- Maintain Compliance: Once your plan is set, ensure you make payments on time. Defaulting on an installment agreement can lead to reinstatement of the full debt and further penalties.
Your Next Steps
Feeling overwhelmed? Don’t be. My e-book, “How to Crush Your IRS Anxiety,” provides further insights and tools to manage your tax debts effectively. It’s packed with actionable advice to not only help you understand your options but to take control and act on them.
Visit my website now at http://crushirsanxiety.com/ to download your free copy and start turning your tax turmoil into a manageable plan. Remember, the goal here isn’t just to settle your tax bills—it’s to restore your peace of mind and ensure you can enjoy many more family celebrations, stress-free.
Thanks for reading, and here’s to a more secure and worry-free financial future!
Andrew Samaniego EA
Andrew Samaniego Tax Planning & Resolution
(619) 268-1084 | AndrewSamaniego.com
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