Connecticut residents who are one or more years behind on paying their taxes may find themselves in quite the bind. With Uncle Sam calling and wanting money now, but not enough money in the bank, figuring out how to handle the situation can be challenging. Thankfully, the IRS is not totally unreasonable and may offer an affordable way for one to pay off tax debt.
Before making any sort of deal with the Internal Revenue Service, it is wise to get a confirmation of the amount owed. There may be an issue, and no one wants to be on the hook for taxes they do not really owe. After getting the number, it is then important to determine if the money is to go to the federal government or the state.
So, with all this information in hand, one can then look at payment options. The IRS may allow installment payments if the amount one owes is no more than $50,000. The payments are generally scheduled as equal monthly payments until the account is paid in full. It is possible to pay more every month, but one cannot pay less than the scheduled amount.
Connecticut residents who do end up making payment arrangements with the IRS, but can no longer afford them, can take steps to avoid any serious blow back. The IRS just wants tax debt paid. They may be willing to modify the payment amount temporarily or permanently — depending on one’s financial circumstances. A skilled attorney can assist those who owe tax debt as they work with the IRS or seek out other tax relief options.
Source: thebalance.com, “How to Pay Off Tax Debts With the IRS“, William Perez, Accessed on Dec. 15, 2017