Payment Plans and Installment Agreements
Whether you call it an installment agreement, payment agreement or payment plan; the idea is the same — you are requesting to make payments on the taxes you owe. The Internal Revenue Service (IRS) will strive to collect all amounts due and as quickly as possible. On the other hand, you may find it more appealing to keep your hard earned cash and extend the payment of your debt as long as possible. That’s where we come in – to negotiate the BEST payment terms possible for you.
Types of Installment Agreements
When negotiating an installment agreement with the IRS, it is important that we first classify your tax debt by amount owed. Depending upon exactly how much debt you owe, will determine how we will need to proceed and the cost of our services to you. Generally, the more you owe, the more work is required to get your best deal with the IRS. We categorize our clients into the following categories:
- taxpayers who can pay all tax liabilities now,
- taxpayers who can pay over time and owe less than $10,000,
- taxpayers who can pay over time and owe more than $10,000 but less than $25,000,
- taxpayers who can pay over time and owe more than $25,000 but less than $50,000,
- taxpayers who can pay over time and owe less than $50,000 but more than $25,000,
- taxpayers who can pay over time and owe more than $50,000
- taxpayers who can make partial payments for less than the full amount owed, and
- taxpayers who cannot pay anything currently
Taxpayers Who Can Pay All Tax Liabilities Now
Whenever possible, paying your tax debt now is sometimes the best option. Full paying your tax liability can usually get you off the IRS radar and let them concentrate on individuals other than you. If you pay now, you can avoid incurring additional penalties and eliminate the interest that accrues. Wherever possible, consider other sources of financing.
Taxpayers Who Owe Less than $10,000
Where your total tax debt is less than $10,000, your ability to get structured monthly payment plans is, in most cases – guaranteed. We’ll help you calculate the minimum payment and help you apply for an optional direct debit of the payment from your bank account. As these are fairly simple cases for us to handle, professional representation is very affordable.
Taxpayers Who Owe Less than $25,000
Similarly, where you owe less than $25,000, obtaining structured payment arrangements is also fairly easy and quite affordable. We’ll help you calculate the minimum payment and help you apply for an optional direct debit of the payment from your bank account. You can also pay a far lesser amount where financial hardships are present. As these are fairly simple cases for us to handle, professional representation is very affordable.
Taxpayers Who Owe Less Than $50,000
Taxpayers who owe less than $50,000 are subject to a third requirement of your bank information and often disclosure for an automatic monthly withdrawal to your bank account for taxes owed. IRS Collection Agents can be fairly aggressive in the collection of your taxes; especially where you have been unresponsive or have the ability to pay your taxes or a large portion of these taxes now.
It does not matter that you may have other business or personal priorities and that you have the best of intentions to pay these taxes at some other time. It is the IRS agent’s job to protect the government’s interest and will often be quite aggressive in the collection of these taxes.
You will usually need expert, professional representation which will require proactive intervention, representation of your financial condition and an advocate to protect and help secure your rights.
Taxpayers Who Owe More than $50,000
Taxpayers who owe more than $50,000 are subject to an even greater level of difficulty to obtain a payment plan for taxes they owe and will often find that the IRS will file a federal tax lien to help secure collection efforts. In almost all cases, professional representation will be needed in avoidance of further complications you may encounter.
Taxpayers Who May Never Be Able to Pay Their Taxes
Taxpayers who owe more than $25,000 and may never be able to pay their taxes may be able to settle their taxes for considerably less than the full amount owed. Similar to bankruptcy provisions which give debtors a fresh start, qualifying taxpayers may be able to permanently escape the payment of these taxes. This benefit, also known as an Offer in Compromise, generally requires the assistance of CPA, with unique qualifications and experience, in the determination of the availability of these relief provisions, other factors of consideration in determining the offer amount, and the structuring of a payment or series of payments necessary to meet these guidelines.
How We Can Help You
Call us today for help to solve your IRS problems. We can help you to understand your obligations and rights, negotiate settlement terms and provide professional, experienced, knowledgeable representation before the IRS.
- Get the best payment agreement possible
- Stop federal tax liens
- Stop bank levies
- Stop wage garnishments
Start early! Avoid additional complications. Professional representation is quite affordable. Call for a FREE evaluation on your account, or complete the “Get Your FREE Tax Evaluation Form” on the top of this page for more information.