Monday, May 19, 2008

Why a Installment Agreement-Full Pay is Your Better Option

Are you aware that interest and penalties do not stop with an installment agreement/payment plan? You can save money by full paying your liability, as quickly as possible; to minimize the interest and penalties you will be charged on the unpaid portion of the debt throughout the duration of the installment agreement/payment plan. However, if you can't full pay the liability, you can partial the liability over a five year span and wait out the (CSED) collection statutory expiration date. After the ten years has expired the liability is dissipates. These are tips the IRS will not tell you. It pays to contact a licensed representative that can inform you of these minute details can have a great impact on your future financial analysis.
Remember, the interest rate on a loan or credit card may be lower than the combination of penalties and interest imposed by the Internal Revenue Code. It is best that you pay as much as your can before entering into an agreement.Keep in mind that when you have liability, a lien (public notice ) is filed and therefore enabling your credit score to fall.However, a notice of a federal tax lien would also be avoided, thereby maintaining your credit standing.
Paying your taxes in full, or partially paying your tax liabilities through liquidating or borrowing against real estate or personal property (bank accounts, stocks, bonds, 401 (k( plans, or life insurance), would cost less than an installment agreement.

No comments: