IRS PAYMENT PLAN
If you find yourself facing a tax debt that exceeds your ability to pay in one lump sum, establishing a payment plan with the IRS is often the recommended approach for resolving it. The IRS provides various pre-established payment plans, each with specific criteria for qualification. However, even if you do not meet the initial qualifications, there are usually options available to negotiate a payment agreement with the IRS, particularly when you have the experienced professionals at Assertive Tax Solutions advocating for you.
COMMON TYPES OF PAYMENT PLANS
The IRS offers several payment plan options for individuals and businesses to address their tax debts. One such option is the streamlined installment agreement, which is typically available for taxpayers owing $50,000 or less. Under this plan, individuals can make minimum monthly payments for a period of up to six years. While a small setup fee may apply, taxpayers can conveniently adjust their monthly payments using online tools.
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For tax debts exceeding $50,000, there is still a possibility of qualifying for an installment agreement. However, in such cases, the IRS requires individuals to provide financial statements for a thorough review of their situation to determine eligibility.
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In situations where individuals are unable to meet the minimum payments for the aforementioned installment agreements, the IRS may consider a partial payment installment agreement. With this option, taxpayers can make lower payments on a portion of their tax debt. Eligibility for this arrangement is more challenging and may involve the imposition of a tax lien or the liquidation of certain assets. Therefore, it is advisable to seek the assistance of a tax resolution professional who can negotiate the most favorable terms on your behalf.
OTHER PAYMENT PLAN OPTIONS
If you do not meet the qualifications for the payment plans mentioned above, rest assured that we can still assist you in finding a suitable arrangement with the IRS. The IRS has specific thresholds of liability that must be met to qualify for certain agreements. In cases where the tax liability falls below the threshold, the IRS requires the submission of financial information to structure appropriate plans.
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It's important to be aware that unless otherwise negotiated, the IRS will continue to apply penalties and interest on any unpaid tax balance, even with an agreement in place. However, we have the expertise to negotiate various types of payment arrangements that are not explicitly outlined by the IRS. These options include increasing payments over time, balloon payments, and other flexible alternatives.
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If you demonstrate a genuine willingness to pay, there is usually a way to find a suitable payment plan. At Assertive Tax Solutions, we are committed to finding an IRS payment plan that aligns with your needs and budget. To learn more about your options, please reach out to us using the contact form below.
