Georgia residents who owe money to the IRS are encouraged to pay off their debts as quickly as possible. In addition to the principal balance owed, the government will likely charge penalties and interest until the past due amount is paid in full. One way to pay the IRS in a timely manner is to ask for an installment agreement. Those who owe less than $10,000 will be allowed to pay their debts over a period of up to 36 months.
Taxpayers who owe the federal government less than $50,000 may be able to pay their outstanding balances over a period of 72 months. Those who enter into an installment agreement will be required to make minimum payments each month. However, individuals are allowed to pay more than the minimum if they desire. If a person can’t afford to make the minimum monthly payment, the IRS may allow for alternate payment arrangements.
Typically, the government will require an individual to make a good faith effort to raise the money needed to pay as much of an outstanding balance as possible. For instance, the IRS may ask that a person attempt to liquidate assets or take out a personal loan to cover an income tax bill. Furthermore, the government may want to review a person’s financial records to determine what his or her minimum monthly payment should be.
If a person is contacted by the IRS about a potential tax debt, it may be a good idea to ensure that the debt is valid. Even if a person knows that he or she owes money to the IRS, it may be possible to dispute how large the outstanding balance should be. In some cases, a tax planning lawyer may be able to help get the IRS to waive penalties and interest owed.