Establishing an IRS Payment Plan
When you taxes, but cannot pay right away, you may be eligible for an Installment Agreement (IA) or Payment Plan. While the IRS encourages taxpayers to pay what they owe as quickly as possible, for those with no other alternative, an Installment Agreement may be the best option. But you must meet the IRS requirements to qualify.
There are different types of Installment Agreements. The types of payment plans range from simple to complicated. Generally, they are:
- Guaranteed Installment Agreement: You, the taxpayer, are “guaranteed” this type of IA under the law if you owe $10,000 or less in back taxes or taxes you foresee that you will owe.
- Streamlined Installment Agreement: This IA is for those who have $25,000 or less of tax liability. You will pay in full within 5 or less years. It is “streamlined” because full financial disclosure is not required.
- Verified Financial Installment Agreement: If you owe over $25,000, or cannot make the minimum monthly payment under a Streamlined IA, you will need to fill out Form 433 to fully verify your financial situation, in order for the IRS to consider your IA request.
- Payment Plan Longer than 5 Years: If you owe more than $100,000, you may need a longer IA to pay in full. You will, of course, have to verify your financial situation, and the IRS may require you to sell some assets as a condition of agreeing to this type of IA.
- Partial Payment Installment Agreement: If you simply cannot pay the full amount of taxes owed, you may seek a Partial Payment Installment Agreement (PPIA). While rarely granted, a PPIA allows you to pay less than you owe over time.
As always, the government wants payment in full, NOW! So in order to qualify for an Installment Agreement, you must show that you cannot currently pay the tax. It is recommended that a taxpayer seek to help of a tax professional in all but the most simple IA cases.
Why use a tax professional? Remember, IRS personnel who do this for a living day in and day out, and their job is to get the highest amount possible from you as an installment agreement. The IRS doesn’t care whether you make your house payment or your car payment. They simply want the Government’s money, NOW!
Without knowing your rights under IRS policies, negotiating with the IRS yourself will most often result in you paying a higher IA payment than if you have a Tax Professional negotiate for you. And if you just cannot make the required payments and still provide for necessities, you may qualify for Non-Collectible Status.
We can guide you through the steps necessary to get an Installment Agreement in place, or have you placed in Non-Collectible Status where appropriate.
For a Free, No Obligation Consultation, contact us.
Please fill out our online form and find out what we can do to assist you.
Or call us at: 702.796.4000
From our offices in Henderson and Las Vegas, Nevada, our tax attorneys will provide aggressive, high quality legal services to clients with IRS problems.
Remember, even if an Installment Agreement is not right for you, there are other options. Some of our other services include:
- Levy Release
- Installment Agreements
- Innocent Spouse
- Offers in Compromise
- Tax Court Representation
- Penalty Relief
Which ever option it right for you, it is important to take action now. Even if you do not have your W-2s or other information, we can obtain the needed information to get tax returns filed.
So, if you can imagine getting the IRS off your back . . . without having to speak directly with the IRS yourself, contact us now.
Please fill out our online form, or call to schedule your free initial consultation. Payment plans are available if needed.