What Can I Do If I Cannot Pay My Tax Arrears?

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<h1>What Can I Do If I Cannot Pay My Tax Arrears?</h1><strong> Author: <a href='http://www.articleseen.com/profile_Katie Simpson.aspx'>Katie Simpson</a></strong><br /><p>Due to the current economic climate, many people are struggling to juggle their finances. If you are struggling with a tax bill that you cannot afford to pay, do not worry, help is at hand. A great choice in these circumstances is a debt management plan, which will take control of your debt and provide you with a Personal Finance Manager who will negotiate with the Inland Revenue on your behalf to reduce your monthly payment and also prevent any court action being taken against you by the HMRC. What is a tax debt management plan? A tax management plan is a structure put in place by a financial management company whereby your debts will be dealt with on your behalf and an affordable monthly payment to the HMRC will be agreed. Charges and interest are reduced or even stopped completely so you would be just paying to the capital debt that you owe. A great benefit to a plan such as this is the burden of dealing with the tax debt personally and having to liaise with the Inland Revenue is lifted from your shoulders. All this can be put in place without the need for further borrowing. How To Set Up A Payment Plan for Your Tax Debt Your personal finance manager will encourage you to pay the highest affordable amount to your debt each month in order to ensure you are debt free in the shortest possible time. Payments will be made monthly until your debt is cleared. In order to qualify for a tax management plan, these points are mandatory: - You must have filed all tax returns. - You will need to disclose all income. - You must not have adequate cash available in a checking, savings, money market, or brokerage account which would enable you to clear the arrears in full if you so wished. - You will be required to complete a personal financial statement and if a business is involved, you will also need a business financial statement. - Your income/expenditure will need to be calculated to prove what you can reasonably afford to pay. This is useful if the Inland Revenue is asking for an unaffordable monthly payment. These monthly payments will continue until your outstanding tax liabilities are paid in full. The Benefits of Hiring Professional Tax Representation to Negotiate your IRS Payment Plan Whether the IRS demands full payment up-front or a payment plan that is substantially higher than what you can afford to pay, a professional tax resolution specialist can help you negotiate an arrangement for the lowest possible monthly payment and also provide you with various options for making those payments. Additionally, if you owe more than $10,000 to the IRS, you will be required to provide full financial disclosure and you will need to hire specialized tax representation to negotiate on your behalf with the IRS. Frequently Asked Questions What do I need to do before I can agree a payment plan? To qualify for a tax debt plan, you need to firstly fill in all tax returns and you must owe more than £500 in tax. This includes VAT, PAYE, Self-Assessment tax and Corporation tax. It does not include Council tax arrears. You must also have an income of more than £500 each month and you must have received your tax bill. What are the payment terms and conditions? You will pay an agreed, affordable monthly fee based on your income/expenditure. The fee will include a small service charge of 15% and the rest of the fee will be paid directly to the HMRC by the management company. What debt collection laws are enforced? No court action can be made against you while you are engaged in a tax debt management plan. The Inland Revenue must deal with the company with whom you are on a plan and cannot take legal action against you throughout the duration of your plan. This includes county court judgements, court summons or repossession of any goods belonging to you. What if I have a payment plan set up with the Inland Revenue? If you already have a monthly installment plan set up, if this amount is not affordable for yourself, a plan can still help. If there is no arrangement set up, and you haven’t contributed at all to the debt, this is also not a problem. Your personal finance manager can set one up for you, or negotiate an existing agreement into a lower monthly fee.</p><strong>About the Author:</strong><br />Sterling Green PLC, based in the heart of Manchester City Centre, is a financial management company. Sterling Green helps with debt management issues<a rel="nofollow" href="http://www.sterlinggreen.co.uk//what-is-debt-consolidation.html">debt consolidation</a> and debt settlement. For more information on tax management plan click on the Sterling Green <a rel="nofollow" href="http://www.sterlinggreen.co.uk/what-is-tax-debts.html">Tax Debts</a> link or fill in a call-back form and one of our friendly team will contact you.<p> Article Source: <a href='http://www.articleseen.com/Article_What-Can-I-Do-If-I-Cannot-Pay-My-Tax-Arrears_28051.aspx'> http://www.articleseen.com/Article_What Can I Do If I Cannot Pay My Tax Arrears?_28051.aspx</a></p>

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Keywords : debt advice, debt management, debt consolidation, debt settlement, debt management plan, tax management plan,

Category : Finance : Finance