There are a number of intricacies when it comes to Internal Revenue Service (IRS) tax law. One of the bigger problems that businesses run into is misclassification of employees. While classifying an individual as an independent contractor rather than an employee can save a business on tax withholdings, thereby shifting that burden to the contractor, an improper classification can lead to owed back taxes and significant penalties.
What is the non-streamlined installment agreement?
It's never a great feeling to be hit with an unexpected tax bill, especially given the fact that the Internal Revenue Service has powerful collection methods that can wreak havoc on an individual's life. Fortunately, those individuals who owe less than $25,000 in taxes for all years can enter into a streamlined installment agreement. Through this process, the IRS grants an individual up to 72 months to pay off the debt, which is usually broken down into monthly payments. Those with tax liabilities up to $50,000 may qualify for one of these installment agreements, but only if payments are made through direct debit or payroll deduction and there hasn't been a default on a previous installment agreement within the last year. There are a number of other rules and requirements that pertain to streamlined installment agreements.
