Can I Pay My Taxes In Monthly Installments?

Paying Taxes MonthlyIf you’ve been surprised to learn that you owe the government taxes and are wondering how you will accumulate enough money to pay by the deadline, don’t panic quite yet. You might be relieved to learn that the IRS does allow taxpayers to pay their taxes in monthly installments. Regardless of the amount due, the IRS works with individuals and businesses to establish payment amounts for monthly installments. Want to learn more? Read on.

Stick To The Plan

While the IRS is willing to work with taxpayers on payment plans, you should be aware that they expect that you will fully adhere to the payment agreement that is established for you. Even one default or late payment that breaches the agreed upon payment plan can result in the IRS demanding payment in full. Of course, because it originally had been established that the taxpayer was not able to pay the full amount upfront, being able to pay this amount in full after a breach of contract could possibly cause further problems.

The IRS Can Garnish Wages

As reasonable as the IRS is in working with taxpayers to set up a tax payment installment plan, once you’ve defaulted on payments, the next step is generally quite drastic. By law, regardless of how much a taxpayer earns, the IRS does have the right to garnish up to a specific percentage of a taxpayer’s income. It is in the taxpayer’s best interest to adhere to the established monthly payment plan to avoid the IRS taking the aggressive action of garnishing wages. Once the IRS takes this action, in most cases, they will typically take the maximum amount that they are permitted in order to clear the amount that is owed to them.

Where To Turn After Your Wages Have Been Garnished

If you’re reached the point where the IRS has garnished your wages, it is likely that they are not going to be as willing to work with you on negotiating another payment arrangement. While the taxpayer has reached that point where their credibility has become tarnished, the IRS has the right to avoid entering into another agreement with them as trust has been lost. But, the IRS will likely work with a tax relief firm in this situation.

Professional Tax Preparation In Troy MI

The tax professionals at E&Y Agency are experts with tax laws, resolving tax issues, and working with the IRS. Don’t allow yourself be burdened by a stressful tax situation. Turn to the tax professionals at E&Y Agency. Contact our office today at 248-362-1313 to set up an appointment with one of our tax professionals.

 

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