Tuesday, February 3, 2009

Installment Agreements for Past Due Taxes

We help taxpayers file back taxes.

One of the major questions that come up once we have completed the past due tax returns, is an Installment Agreement with the IRS for the unpaid taxes.

The tax code says the IRS must agree to accept the payment of your tax liability in installments if, as of the date you offer to enter into the agreement:

1. Your total taxes (not including interest, penalties, additions to the tax, or additional amounts) do not exceed $25,000

2. In the last 5 years, you (and your spouse if the liability relates to a joint return) have not:

a. Failed to file any required income tax returns
b. Failed to pay any tax shown on any such return, or
c. Entered into an installment agreement for the payment of any income tax,

3. You show you cannot pay your income tax in full when due.

4. The tax will be paid in full in 5 years or less and

5. You agree to comply with the tax laws while your agreement is in effect.

These tax laws are subject to change. To view the most recent tax codes visit irs.gov

To request an Installment Agreement, use Form 9465, Installment Agreement Request. You should receive a response within 30 days.

For help with past due tax returns, visit: http://www.taxeswilltravel.com/past_due_returns.htm
Ping your blog, website, or RSS feed for Free