Saturday, March 03, 2007

Can't Pay the IRS? What You Can Do

Taxpayers who can’t pay what they owe the IRS have limited options — and all of them can be costly.
The best idea may be dealing straight up with the taxman. The IRS will agree to an installment plan as long as the taxpayer doesn’t owe more than $10,000, and the taxpayer has filed his or her returns and paid tax due in a timely fashion over the previous five years.
Anyone who owes more than $10,000 must get approval from an IRS district office and furnish the government with additional financial information.
Apply for an installment agreement by filing Form 9465, Installment Agreement Request. There is an application fee of $105, along with late payment penalties and interest.
Another possibility is to raid a retirement account, but taxes, penalties, and interest on that transaction can be higher than the IRS assesses. Using a home equity line of credit is another option as long as taxpayers can do it without putting their home at risk.

Source: The Associated Press, Joyce M. Rosenberg (03/01/07)

Richard's notes... To apply for a home equity line with a loan specialist here in the San Fernando Valley, contact Tom Cortesi with First Financial at 1-323-791-8145 or visit his site and apply online...

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