IRS Payment Plans
There are payment plan options available if you’re unable to fully pay your back tax liabilities to the IRS. Unfortunately, most taxpayers aren’t familiar with their own tax rights which allows IRS tax collection agencies to pressure them into accepting unsustainable payment plan practices. If you cannot pay off your entire tax debt at once, you may be able to get an IRS installment agreement to pay off the balance over time. This option can also help you avoid excessive late payment fees and interest rates that can exorbitantly increase your tax debt over time.
In order to apply for a payment plan, you must be in current compliance with your tax filings. There are several different types of installment agreements and the one that best suits you will depend on how much you owe, your current financial condition, the amount of time the IRS has to collect the debt, and other financial factors.
Our team of experienced CPA’s enrolled agents and tax professionals can analyze your current tax situation and negotiate with the IRS to secure the best payment plan for you. We will review your options, inform you of your rights, keep you up to date with your case’s progress, and answer any questions you may have. You never have to speak to or be in contact with the IRS at all so long as you have us on your side—regain your peace of mind with Franskoviak Tax Solutions as your defender.
To schedule a free consultation and to find out if you’re eligible for an IRS payment plan, contact us today.
IRS Payment Plans
An IRS payment plan is a flexible option for taxpayers who are having difficulty paying the full amount of taxes owed on time. These plans allow individuals to pay their taxes over a period of time, rather than as one lump sum. This can be helpful for those who are facing financial hardship or unexpected expenses.
Types of Payment Plans
The IRS offers a variety of payment plan options, depending on the individual’s financial situation and the amount owed. These include:
- Short-term payment plan: This option allows taxpayers to pay their taxes in full within 120 days. There is no fee for this plan, but interest and penalties may still apply.
- Installment agreement: Taxpayers can request an installment agreement to make monthly payments towards their tax debt. The amount and frequency of the payments will depend on the individual’s financial situation. There is a one-time fee to set up this plan, which can be reduced for low-income individuals.
- Partial payment installment agreement: This option is for taxpayers who are unable to pay off their entire tax debt within the allotted time period. It allows for smaller monthly payments based on the individual’s ability to pay. This plan also requires a one-time set-up fee.
- Offer in compromise: In certain cases, taxpayers may be able to settle their tax debt for less than the full amount owed through an offer in compromise. This option is typically used as a last resort and requires careful consideration and documentation of financial hardship.
Qualifying for a Payment Plan
In order to qualify for an IRS payment plan, individuals must meet certain requirements. These include:
- Owning no more than $50,000 in combined tax, penalties, and interest.
- Being current on all tax filing requirements.
- Agreeing to make timely payments towards the outstanding balance.
- Demonstrating financial hardship or inability to pay the full amount owed.
Benefits of Payment Plans
There are several benefits to utilizing an IRS payment plan, including:
- Avoiding or reducing additional interest and penalties.
- Protecting against collection actions such as bank levies or wage garnishments.
- Maintaining good standing with the IRS and avoiding further legal action.
Application Process
To apply for a payment plan, individuals can use the IRS Online Payment Agreement tool or submit Form 9465 by mail. In some cases, the IRS may request additional financial information to determine eligibility.
IRS payment plans can provide much-needed relief for taxpayers struggling to pay their taxes. It is important to carefully consider all available options and consult with a tax professional if necessary. With timely payments and adherence to the terms of the plan, individuals can successfully pay off their tax debt and avoid further repercussions from the IRS.
Contact us for a free consultation at 1-855-TAX-FIXX (829-3499) or email us at mike@franskoviakcpa.com, website https://franskoviakcpa.com — we’re here to help you with tax resolution services, understanding your rights, assessing your unique situation, and where required, negotiating with the IRS on your behalf.
Frequently Asked Questions About IRS Payment Plans (FAQ)
