2020's been an extraordinarily successful year in Chesapekae VA real estate! I anticipate that I'll be working with many top producing Realtors who won't be able to full pay the balance due on their 2020 income tax return.
They'll be relieved when they learn they can arrange an IRS Monthly Payment Plan,
But there’s two mistakes Realtors make when setting up an IRS Installment Agreement:
- In the rush to get the IRS off their back, they agree to a payment plan they can’t afford. This can put them in a worse position than when they started! If they fail to make a couple payments, and defualt on their agreement, they'll find the IRS tough to deal with in setting up a new plan. Quite simply, the IRS doesn't look favorably upon taxpayers who fail to keep their promises.
- Taxpayers on a pay plan often fail to take into account the fact that they’ll need to make payments on their current year taxes, on top of their monthly Installment Agreement payment toward prior-year tax debt. One of the conditions of an Installment Agreement is that you also stay "in compliance" with your current year obligations. This means making Quarterly Estimated Tax Payments. If they don’t make Quarterly Estimated Payments on 2021 income, they'll end up defaulting on their Installment Agreement as soon as their 2021 return (with a balance due) is filed.
If you have any questions about back taxes, unfiled returns, or IRS montly payment plans, contact me at jim@anchortaxrelief.com or call Anchor Tax Relief 757-312-0098. I'm authorized to represent taxpayers before the IRS in all 50 states, and have assisted many Realtors around the country to get the best possible resolutions to their IRS and state tax problems.
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