A Beacon Press And Dominick Sartorio Bulletin:Installment Plan May Help If Paying Taxes Is Burdensom

March 11, 2011 - PRLog -- “If you owe current year taxes or liabilities from prior years, you may want to consider setting up an installment agreement with the IRS” stated Dominick Sartorio. However, this installment plan is not a bail out and does come at a price. Extremely important for taxpayers  to note is that even if you successfully establish an installment plan, the IRS may still file what is called a Notice of Federal Tax Lien to secure their interest until you make your final payment and satisfy the debt. This filing by the government can be devastating to a taxpayer’s credit rating.
These efforts are all part of the $860 billion tax package that includes extending the Bush tax cuts, which are across the board reductions in the income tax rate, tax cuts for businesses, and other tax breaks.
As always, everything depends on your individual situation, but for the most part, most taxpayers will benefit from this break and see it immediately in their paychecks” Mr. Sartorio also stated.
For 2011, wage earners will only pay Social Security taxes on the first $106,800 in wages, with any earnings above that not affected nor impacted. Higher income earners who were not eligible for “Making Work Pay” before will fare better under this plan: Individuals making $100,000 will see a $2,000 increase in take home pay, approximately $39 per week, however, couples making $100,000 will see an increase of approximately $23 per week. Under this current stimulus effort, individuals will fare better because     ”Making Work Pay” previously awarded eligible couples twice the benefits. Lower income earners will not fare as well under these new efforts. A taxpayer would have to earn at least $20,000 to match or exceed any payout from the expiring “Making Work Pay”.
As always, everyone’s individual situation is different. Seek the advice of your tax professional on how this may affect you.


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U.S. Treasury Circular 230 Notice:  Any U.S. federal tax advice included in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal tax penalties.

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