There can be situations where you might have made a mistake while filing taxes, or maybe you simply missed the deadline. If you have failed to file your taxes, you will owe the IRS. Especially if you are short on money, there are a number of IRS payment plans that you can opt for. These plans make it easier for the defaulters to pay their tax debt.
This guide will help you to clear all your doubts related to payment plans with IRS. Keep in mind that you will need a tax expert to be able to go through the process without any issues.
What is a payment plan?
An IRS payment plan is an agreement with the IRS. These plans are only for those who owe some amount to the IRS. They can get an extended time frame to pay the taxes to the IRS. If you find yourself in such a situation and with decent tax debt, you will have to request a payment plan. However, make sure that you will be able to pay off the debts within the extended time frame.
Not paying your taxes in time can lead you into serious issues. Even for payment plans with IRS, you will have to pay a fee to set up the account. So, make sure that you are managing your taxes properly. If you are facing any issues, you can hire tax experts to file the taxes for you.
How to set up a payment plan?
You should first be clear about the tax that you owe to the IRS. You can check the copies of the tax returns to verify the amount. Alternatively, you can get your tax expert to handle this for you. The final amount that you owe will also include the interest and penalties due to late payment.
You will then have to fill out a few forms. Form 9465 is for requesting an Installment Agreement. There are a few steps in this process for which you will need assistance. So, the best solution would be to hire a professional tax resolution service provider who can assist you in the best way possible. With an expert, you will be able to set up an IRS payment plan without any hassles.
What is the cost of setting up a payment plan?
If you want to set up payment plans IRS, you will need to pay a basic user fee as well. The fees vary depending on whether you are revising a plan or applying for a new one. It might also change from time to time as per the IRS.
Again, a tax resolution service provider will be thorough with the process. They will know how to handle such situations and what the things to keep in mind are.
Different payment plans available
There are a number of IRS payment plans for you to choose from. However, keep it in mind that you might not be eligible for all. So, as per your situation, you will have to select the payment plan to ease out the burden.
Guaranteed installment agreements
In case you have a tax debt of less than $10,000, there are high chances that the IRS will agree for installment payment. However, you will have to meet certain criteria to be eligible for this. Consult your tax resolution service provider to find out more.
Individual payment plans
If you don’t meet the criteria for guaranteed payment plans, you might be eligible for an individual payment plan. You will only be eligible for this plan if your tax debt is less than $50,000. Individuals can opt for a short term or a long term IRS payment plan in this option.
Partial Payment Installment Agreements (PPIAs)
There is another option for those who are facing major difficulties in repaying the tax debt. PPIA allows the defaulters to make a monthly payment. The amount is decided on the basis of how much you can afford after all the calculations. However, you must have a debt of more than $10,000, along with no pending returns to be eligible for this.
Offer in compromise
This is the last option for those who have tax debts are looking for IRS payment plans. Only after all the other options have been exhausted, you will be eligible for this one. This offer allows you to pay a lump sum to the IRS, but this amount will be less than what you actually owe. Especially for this method, you will need a tax expert to help you out with the process. The tax expert will have to represent you if you are looking to get this IRS payment plans.
These are the payment plans with IRS that can help you get out of tax debt issues. These plans will allow you to pay back taxes over a period of time as per your financial situation. However, to find all the details about these plans and to apply for the right one, you will need a tax expert.
About Platinum Tax Defenders
Platinum Tax Defenders is an experienced tax resolution service provider. The company has been in the industry for years. We have helped numerous clients with our quality services and helped them get the most out of bad situations. If you are facing any issues with the IRS, our experts should be your first call. We can provide top-notch tax relief services to help you get the best of the rules and laws by the IRS.
So, if you have significant tax debt and if you are looking for ways to ease off the burden, reach out to our experts. We will help you decide the best IRS payment plan that is available for you as per the situation. Make sure you contact our experts on time to get the best results. Check out our services or call us at 866-866-8053 to find out more about Platinum Tax Defenders and how we can offer the best solution for your tax-related issue.