If you have been hit with a Tax Debt bill and you cannot pay the entire amount in a lump-sum payment, you may be eligible for an Installment Agreement from the IRS. By agreeing to a Payment Plan you will reduce your overall tax liability by eliminating the interest and penalties, as long as you make your payments on time.
Payment Plans and Installment Agreements are ONLY available to taxpayers who have are compliant on their tax returns. This means that you must have all your tax returns filed before you can request an installment agreement.
If you owe $50,000 or less in combined individual income tax, penalties and interest, and have filed all of your returns, you are eligible to apply for an online payment agreement. If you are a business and owe $25,000 or less in payroll taxes and have filed all of your returns, you will also meet the requirements for an online Installment Agreement.
If you have NOT filed all of your tax returns, you may still be able to obtain a Payment Plan and pay your back tax debt in monthly payments.
If you need help understanding the process and preparing your application for and Installment Plan, contact our Tax Consultants and allow us to evaluation your situation and assist in getting a payment plan set up.