It comes as no surprise that financial issues remain one of the top stressors in America. Worrying about finances can take a toll on physical health, mental health, work life, and relationships with family and friends. Issues with taxes and the IRS can be complicated and frustrating, and the process of negotiating with the IRS can feel hopeless. In spite of this pressure, there are tax professionals ready and willing to help sort through this difficult process, as long as you seek IRS help. If you have unsettled tax debt, know that there are different options available to you. When trying to settle tax debt, many people are best served through an IRS installment agreement that allows them to repay their balances over time. This type of resolution can involve a variety of different programs and payment amounts, all leading to a long-term solution covering the tax balance in full or at the negotiated amount.
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While the most ideal way to settle tax debt is to pay in full immediately, this is not always a viable option for many individuals with unpaid taxes. Many people are unable to pay the total amount right away. Those who attempt to pay all of their debt without having the cash in-hand will seek other means. Often this involves taking out an equity loan, refinancing your home, using credit, or getting help from family and friends. Fortunately, if you are unable to make a full payment, there is no need to worry, as there are other options available to you.
Usually, the most feasible option comes in the form of an IRS Installment Agreement. An installment agreement comes about after you have negotiated with the IRS on a plan that you will make monthly payments until the tax debt—including all penalties and interest—are paid off. When you enlist in an installment agreement, you make an agreement with the IRS to make the entailed payment on time every month, and that you will no longer neglect to pay off your tax debts in the future.
One of the main tricks to getting an IRS installment agreement accepted is choosing the right agreement type. Each request must fit a different financial situation, and the installment agreement request should involve different facets of the individual’s life and their specific needs. Handling tax debt on your own can lead to long approval processes and may result in paying more than you would have if you worked with a trained tax debt negotiator.
If you decide that you want to pay off your tax debt in monthly installments, then the next step is to find the best IRS Installment Agreement plan for you. In order to obtain an Installment Agreement, you must formally submit a plan with a statement of all of your financial details in order. If your proposal is approved, then the IRS will immediately halt any levies and you will more than likely be released. Because you have agreed to settle your debts, you will remain in good standing with the IRS. Community Tax professionals will help you find which plan is right for you.
There are four different kinds of installment agreements. The different options are created for different income levels and different levels of debt. The IRS will likely work with you to find the solution that works best, so long as you provide all of the appropriate information.
In order to qualify for any of the below installment agreements, individuals must owe up to $50,000 or less in combined individual income tax, penalties, and interest. You must have also filed all past tax returns. In order for a business entity to qualify, the business must owe $25,000 or less in payroll taxes in addition to filing all returns. In this event, you are seen fit by the IRS to apply for an online payment agreement.
In the case that you are ineligible for online payment agreements, you will still be able to pay in installments. In order to do so, you will complete and mail a form called the Form 9465, Installment Agreement Request, and Form 433-F, Collection Information Statement. You may also call the number listed on your notice you received from the IRS.
Within your agreement, you will have to follow certain stipulations. For instance, your future refunds will be applied to your tax debt until payment is completed. In addition, you will have to pay at least your minimum monthly payment when it is due. Every payment must include your name, address, social security number, phone number, tax year and the return type of your payment. In the future, you will have to pay all tax returns on time, and as mentioned earlier, those refunds may be applied to your tax debt by the IRS. If your refund is applied to your debt, you will still have to make the minimum monthly payment for that month as well. Finally, always be sure that your statement is sent to the correct address, and if you change your own place of residence, that you mail a Form 8822, Change of Address form.
It is important to follow the guidelines of your installment plan since you are already walking a thin line with the IRS. If you do not follow these rules, you will be in danger of going into default and may face severe penalties from the IRS. In the case of a default, you will still accrue penalties and interest. If you happen to go into default, you may still reinstate your agreement. However, you will likely face a reinstatement fee, which will only add to your expenses. These fees will vary based on the payment agreement you have.
While you navigate this tricky Installment Agreement process, it is key that you have assistance from a skilled tax expert. The tax professionals at Community Tax are expertly trained in all tax matters related to the IRS. Our specialists provide only the best in customer service to help organize your finances and implement an effective plan to support your needs. We have a proven success record of IRS payments our clients can afford.
Tax professionals like those at Community Tax are well schooled in all versions of IRS Installment Agreements, and how to get the IRS to approve them quickly. We work diligently to enact a plan so that you can stop accruing penalties and interest on top of your tax debt. Our specialists teach our clients how to stay current with future IRS payments, state taxes and all filing deadlines. Settling IRS debt does not have to be a burden on your life. With help from Community Tax, you will be well on your way to paying off debt and creating a financially secure future.
Community Tax’s practitioners and case processors can guide you every step of the way, from initial installment agreement request to final payment. They will work directly with the IRS agents and ensure that the representation will lead to the best personalized solution for your needs. Anyone looking for an IRS installment agreement can benefit from the right resolution or settlement. Getting in touch with a tax expert is the best move toward the answers every federal or state tax debtor needs. Call 1-888-676-4319 to consult with one of our professionals today!