As we approach the last quarter of the year, taxes will soon be on the minds of folks here in Savannah and across the U.S. For individuals who sought an extension of their 2014 tax returns in April of this year, October 15th is the final deadline to file.
While we all hope for good news and refunds from the government, the reality is that many Savannah residents will soon get hit with a bill for federal taxes that may range from hundreds of dollars to several hundred thousand dollars. There will likely also be additional penalties incurred for not paying at least 90% of the balance when it was originally due on April 15th.
Fortunately, the IRS makes provisions for those who still cannot pay their tax bill in full. If you owe $50,000 or less in combined individual income tax, penalties and interest, and you’ve filed all of your tax returns, you can apply for an installment agreement where you are able to pay your bill over a period of time.
Taxpayers can get the process started online here, or apply for an installment agreement by mail by using federal form 9465, Installment Agreement Request. It typically takes the IRS a month or so to let you know if your application is approved or denied.
Do expect to pay interest, even if you are approved. It will be included in your installment plan. The IRS may also file a federal tax lien until the bill is paid in full. And, finally, if you are still paying by tax time next year and you have a refund coming to you, the IRS may seize any moneys that you are owed to satisfy your outstanding tax debt.
Still Struggling to Pay Your Taxes?
Our Savannah tax controversy lawyers are here to represent you with your tax matters before the IRS. If you owe more than $50,000 in back taxes, thus making you ineligible for a payment plan, or you need assistance in disputing a bill or negotiating what is owed, we invite you to contact our Savannah law firm at (912)352-3999 for a free planning session.