What is an IRS Payment or Installment Plan?
An IRS payment installment plan allows taxpayers to take care of their tax debt through monthly installment payments. The total amount of your plan is determined by the amount you owe and how long the IRS will wait to collect the debt. This can be an option for those who do not qualify for an Offer in Compromise. If you cannot afford to pay your tax debt in a lump sum, the IRS offers a partial payment installment agreement depending on your ability to pay and IRS financial standards. To properly create an IRS payment plan, you need the best IRS tax accountant who will thoroughly evaluate your tax debt and calculate the lowest monthly amount that the IRS will accept from you.
Do I Qualify for an IRS Payment Installment Plan?
If you owe the IRS $100,000 or less, you may qualify for an IRS tax payment plan. Under the current IRS Fresh Start Program, you may qualify to pay your tax debt with 72 or 84 monthly installments. Though, you must be current on this year’s tax obligations. IRS installment plans also have certain disadvantages. Penalties and interest continue to accrue until you pay your debt in full. Combining tax debt with IRS penalties can result in interest rates as high as 10% per year.
Do not try to negotiate an IRS Installment Payment Plan by yourself. At Showalter CPA, we know that a large tax debt can create many problems. We will help you complete a Collection Information Statement, create a payment plan you can manage, propose a monthly amount you can afford and decide the best way to make payments once your plan is approved. Do not put it off anymore. We simplify the whole process for you and carry the burden of the rules and paperwork so that you can get away from the stress. If you are wondering whether you can qualify for an IRS tax payment plan, do not hesitate to contact our experienced tax relief accountants. Your IRS installment payment plan must be submitted accurately by an experienced tax accountant or your plan could be rejected by the IRS. Take the first step toward resolving your looming tax concerns. Contact us today for a free consultation at 605-646-3585.
We can secure for you an installment agreement with the IRS to allow monthly payments on your tax liability. The agreement keeps the IRS or the State from levying if the payments are paid as agreed. Without an installment agreement, the IRS or State may take all but a small amount of your paycheck through a wage garnishment. They could also levy bank accounts and file liens on all your assets including your vehicle or home. We may be able to combine an Installment Agreement with a Penalty Abatement to save money and get time to pay the rest.
If you do not qualify for the offer in compromise program, an IRS Installment Plan may be the best way to resolve your tax debt problem. Setting up a payment plan with the IRS allows time to pay your tax debt. Sadly, the IRS continues to add penalties and interest to any unpaid balance. The greatest benefit of an IRS payment plan is that the amount of payment will consider your living expenses and provides protection from additional enforced actions. The IRS will release levies they have filed once your payment plan is approved and they will not file any new levies if you make the agreed upon payments.
The Dreaded Letter from the IRS
If you have received a tax notice, IRS letter, audit notice, or other tax correspondence from the IRS, a state agency, or a local agency, it can be difficult to know what to do next. We frequently represent clients with IRS penalties, interest, and taxes due, and we can help you, too. We have worked on items such as IRS Offers in Compromise and Penalty Abatements.
The Tax Help You Need
If you are ready to face your tax problems, we are here for you. We can help you relieve that huge stressful burden, so you feel lighter and free from all that stress. Do not face your tax issues alone. Our trained and certified tax professionals work diligently to find the best outcome we can on your tax issues. Turn to the Showalter CPA Firm, and let us put our tax resolution services to work for you. Call now for more information or to schedule a consultation at (605) 646-3585.
The IRS may agree to let you pay your back tax debt off gradually in monthly installments if you cannot pay your tax debt in full.
The IRS may be a difficult and demanding agency to work with, but it is also highly practical and straightforward. The IRS understands that it simply cannot take money that doesn’t exist. If you don't have the money, you can't pay. Allowing taxpayers to pay back tax debt over time can often be the easiest and best way for the IRS to collect all the money it is owed.
Installment plans are great options that work well for both the IRS and the taxpayer. Though you will usually have to pay penalties and interest, setting up a payment plan through successful tax resolution can get you back on a track so that you can become free of your tax debt.
An installment agreement can be either formal or informal. In an informal installment agreement, the taxpayer promises to make monthly payments in an agreed amount which will pay off his balance within two years. A formal installment agreement is a written agreement in which the taxpayer promises to make, and IRS agrees to accept, monthly payments in a specified amount. A taxpayer can allocate payments, such as against the trust fund portion of employment taxes, under an informal installment agreement but not under a formal installment agreement.
The IRS is very reasonable when it comes to accepting an installment plan for back tax debt. Their goal is the same as yours. To move on and put this behind you. Take the first step and let us set up a payment plan that works in your favor. Call us for a free tax consultation at 605-646-3585.
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