How to Respond if You Cannot Pay In Full
Last year’s tax filing was more complex than prior years because it was the first year that the Tax Cuts and Jobs Act (TCJA) was in full effect. The new tax law created an unwelcomed surprise for many — a tax bill rather than a refund. As a result, many North Carolina residents filed their taxes by the April 15th deadline but did not submit payment.
A mass mailing from the IRS went out over the last two months for all those owing taxes. If you still cannot pay the amount owed, what are your options?
The two most popular options include:
- Installment Agreements. These agreements are essentially a long-term payment plan worked out with the IRS. [Learn More].
- Offers in Compromise. This is a negotiated lowering of the overall amount due if you simply cannot pay the full amount owed. [Learn More].
There are many other ways to unburden yourself of tax debt. The knowledge offered by an experienced tax resolution attorney will help you determine which option is most favorable to your specific situation. The IRS wields extraordinary powers when attempting to collect delinquent taxes. Some of these powers include property liens, seizing assets and levying on your bank accounts.
Get ahead of these issues by addressing the tax bill you received immediately and aligning yourself with skilled legal counsel. Contact Murray Moyer, PLLC, a North Carolina Tax Law Firm, for a consultation.
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Written by Justin Moyer on August 21, 2019.