Having to deal with the Internal Revenue Service can be a daunting prospect for Georgia residents. The agency has the power to garnish paychecks and freeze bank accounts, but taxpayers can often avoid such measures by acting proactively. Many people make the mistake of not filing a tax return when a large amount of money is owed, but this can lead to additional penalties and interest. Failing to file a Form 1040 could also result in the closer IRS scrutiny of previous returns.
Communicating with the IRS and asking the agency for leniency may yield results for taxpayers with track records of paying their taxes in a timely manner. The IRS will often waive the usual penalty for those facing tax problems for the first time, and the agency also offers a fresh start program to help individuals and small business owners with tax issues.
Setting up a payment plan with the IRS may seem daunting to some taxpayers, but the agency has taken steps to make the process less intimidating. A payment plan can be requested using Form 9465 if the amount of unpaid taxes is less than $50,000, and the entire process can often be completed online. Taxpayers should commit to an affordable payment arrangement and send additional monies when they are in a position to do so.
Some taxpayers choose to pay their tax bills by using credit cards or other forms of borrowing, but this may not always be prudent. An attorney with tax law experience could explain the payment options available from the IRS and compare them with other ways of paying outstanding taxes. An attorney could also advocate on behalf of taxpayers who are facing more draconian action from the IRS such as asset seizures and income garnishments.