![]() Let's take the above example again, in which you owe the IRS $5,000. We'll calculate the interest for one month. ![]() So you would owe $325 for every month you don't pay on top of the $5,000 in taxes you already owe the IRS. Now, this simple example doesn't take into account any payments you make on your tax during the year, but it should give you an idea of how large tax debt can grow and grow. $105 if you will be paying manually (sending in payments by mail or online).$52 if you set up an automatic debit agreement.And making payments on your unpaid taxes is what an installment agreement is all about. $43 for eligible low-income individuals (your income is 250 percent or lower than the poverty level set by the Department of Health and Human Services). If you are supposed to get an income tax refund in any tax year while you are making payments on an installment plan, your refund will be applied toward what you still owe the IRS. Yes, the IRS will get its money.Īs with any other debt, missing a payment or multiple payments can make for a bad day. Not paying could put you in danger of defaulting on the installment agreement. ![]() And when the IRS does not get its money, it goes after its money. The IRS will send you a Notice of Federal Tax Lien when it has acquired the right to seize your personal property (your house, your furniture, your antique galleon). When the IRS sends you a Notice of Federal Tax Levy, it will grab your property and auction or sell it to satisfy your tax debt. HOW TO FILE A 2016 TAX EXTENSION SOFTWARE. ![]()
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