Millions of taxpayers across the country will file their taxes this year, and many of them will run into a variety of potential tax issues. Tax debt is an issue many people must face at some point in his or her life, and it can be an intimidating and frustrating experience. Some people fear the IRS because they lack the funds to pay their tax debt in full right away, and assume that the IRS will be unforgiving and inflexible in payment options. However, the IRS is willing to work with you. Fortunately, the IRS has instated settlement programs that allow you to pay based on your individual circumstances. If you respond promptly to their notifications regarding tax debt, you may qualify for a plan that suits your situation, so you can still live comfortably within your means. Don’t wait another day to get your tax debt settled. Let the professionals at Community Tax help you negotiate an IRS payment plan with the government agency.
What is an IRS Payment Plan?
While incurring tax debt is never ideal, what is worse is accruing interest in penalties by ignoring the IRS and putting off your payment. Nobody enjoys paying taxes, but unless you receive a refund, your taxes belong to the government. If you do not keep up with filing and paying your taxes, the IRS will find a way to make you pay. However, as mentioned earlier, the IRS is willing to negotiate with you to find the right plan of action that will help both of you. If you lack the funds to pay in full right away, there are still other options out there that the IRS is willing to consider when you present your case. Save yourself the hassle of sorting through the vast array of options yourself, and consult a professional at Community Tax who can find the best path for you in no time. The IRS payment plan is a way for taxpayers to resolve their unpaid taxes with the federal government without further collection actions being taken on their debt. The IRS payment plan may be an installment agreement, an offer in compromise, a partial payment, or stair-step type of installment agreement. A plethora of options are available to suit your financial situation and life circumstances, and we can help you find the one that suits your needs best.
There are many taxpayers that encounter problems when attempting to understand the rules required to enter into an IRS payment plan. This is because each payment plan has a specific set of requirements that the IRS imposes before a taxpayer is accepted into a particular payment plan to pay off tax debts. If you want to enter an appropriate tax debt payment plan that suits your needs, you must submit financial documentation to the IRS that provides evidence as to why you need a specific plan. While this may seem daunting, we are here to help you through the process, step by step. We also have professionals who are legally able to represent you on behalf of the IRS, so you know you will be in good hands. Below are just a few of the typical options you may qualify for in order to settle your tax debt.
Payment Plans and Installment Agreement Options
The IRS has many payment plans available to help benefit both parties. First, it is important that you not ignore any notices the IRS gives you. In principle, the quicker you take action, the better. If you are unsure as to what plan is right for you, reach out to our tax experts at Community Tax, and we will analyze your financial status to negotiate a plan on your behalf with the IRS. Many people believe that they must answer to their tax debt by paying off the full amount immediately. However, this is not the case. In turn, a lot of people misunderstand the IRS and ignore the notices they receive. This decision will inevitably cause you to accrue penalties and interest. If you make a speedy effort to appeal your case, the IRS will be responsive in working out a deal with you.
Monthly payments are an excellent way of triumphing over tax debt. This is typically the route many people take when trying to pay off tax debts in an efficient and manageable manner. Setting up installment agreement with the IRS can be a quick and easy way to begin paying off your debt. The most important part of the process is to promise to pay off all of your tax debt within the agreed period of time—and follow through. This way, you will remain in good standing with the IRS once the tax debt is paid. Once you present your case to the IRS, it is the government who has the power to determine how much you will pay every month. However, they do take into consideration many factors, including your income, assets, and expenses you must make in order to sustain yourself. The IRS has the authority to determine how much you are able to pay every month. However, with the help of our trained professionals at Community Tax, we can find the best deal in your favor and present it to the IRS on your behalf.
If you qualify for a payment agreement, there will always be certain terms you must follow in order to remain in good standing with the IRS. It is essential that you follow these rules to avoid going into default and incurring worse penalties. For any installment agreement, you will have to follow common requirements. Primarily, you must agree to file all past and future tax returns. You will also have to make all payments on time and in full to avoid future trouble with the IRS. Next, you will have to agree to make all scheduled payments of at least the minimum agreed amount until all of the tax debt is paid off. Also, take note that all future tax returns will automatically be contributed by the IRS toward your tax debt until the debt is completely paid off.
If you seek to make a streamlined, hassle free payment, then you may even possibly qualify for an online payment agreement. This agreement is simple and easy to pay: if you qualify, you will be able to make all of your monthly payments online, automatically. In order to be eligible for this type of agreement, you must meet the prerequisites offered by the IRS. The most important of these is that you must owe no more than $50,000 in individual income combined with all income tax and penalties. If you are filing for a business, you must owe no more than $25,000 or less in payroll taxes. This is just another reason as to why it is critical that you respond as soon as possible—you can qualify for a more relaxed plan so long as the interest and penalties have not accrued substantially.
Perhaps you are ineligible for an online payment. If this is the case, there is no need to fret, as there are other options still available to you. You will still be able to contribute to an IRS payment plan through other means. In order to do so, you must complete a Form 9465, Installment Agreement Request, and Form 433-F, Collection Information Statement. This will allow you to mail your payments instead of depositing them online.
If you are the owner of a small business, then you may apply for an in-Business Trust Fund Express installment agreement. Fortunately, these agreements do not usually require that you present financial statements or financial verification.
We have worked with clients in a diverse array of financial predicaments. Our tax experts are experienced to help you in your time of need, no matter how big or small the problem. We are prepared to gather, organize, and evaluate all of your financial information to find the best payment option for you. We will represent you on behalf of the IRS and do all of the negotiating for you, so that you do not have to jump through all of the legal hoops by yourself.
Offer in Compromise Agreement
Not sure if you can afford to take care of your total tax debt, even if you did make monthly payments? You may qualify for an offer in compromise. An offer in compromise is a statement of permission allowed by the IRS to pay off less debt than you owe. If the IRS recognizes that it is simply unrealistic for you to pay off the full amount, then they might agree to an offer in compromise. There can be any number of legitimate reasons why a taxpayer may be given an offer in compromise by the IRS. Most people who qualify in this category are those that are not currently in a financial situation where they can afford the payment. These are usually people in a severe financial hardship. The IRS is willing to take into consideration many financial factors, including your income, asset equity, ability to pay, and your required expenses in order to live.
In most cases, the IRS will likely approve an offer in compromise if they decide that it is not reasonable that they will gather the full amount of your debt in a certain amount of time. If you think you qualify for an offer in compromise, reach out to us at Community Tax and our experts will help you every step of the way.
The IRS will usually grant an offer in compromise when they surmise that the total amount of tax debt cannot be collected within a realistic time frame. It is critical that a professional sit with you and carefully comb through all possible payment options before submitting the paperwork for an offer in compromise. Our qualified tax experts at Community Tax have the finesse to go through every detail and we will help you determine if this is the best option for you.
Finding the Best Payment Plan for You
As with an installment agreement offer, it is still required that you file all past tax returns and that you remain current with all filing and payment requirements online. You must also agree that you will file all taxes and pay any debt in the future on time and in full. Unfortunately, you are not eligible for an offer in compromise if you are involved in an open bankruptcy proceeding. Consider this before you apply for an offer in compromise. We at Community Tax will go through the pre-qualifier process with you to make sure you get the best out of your offer in compromise.
How We Can Help
Our professionals at Community Tax are willing and ready to help people understand their options when they are in need of an IRS payment plan to resolve their back tax problems. The Community Tax resolution team has helped taxpayers from across the country get the resolution plan that they need. During the investigation phase of our program, our team will help you furnish the documentation that will prove to the IRS your ability to pay or not pay, your income, expenses and the equity of your assets. Using this information, our team will suggest the best IRS payment plan available to you based on your individual circumstances, and then correspond with the IRS to ensure that you get the assistance required.
Hiring a professional tax company to help you receive an IRS payment plan could save you thousands of dollars off your tax debt. Failing to take action on your debt could result in the government placing a lien on your assets and end in levy actions. Community Tax will ensure that these actions are prevented providing our customers do not contact us after these actions are already under way. We can take the case of your hands, and in some cases, we can even negotiate to have the IRS remove a tax lien or levy. Call us today and get help with your IRS payment plan.
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