IRS Payment Plans

Payment PlansAfter first speaking with the IRS about different Offers in Compromise options, and it has been decided that your situation does not qualify you, we will negotiate an IRS tax payment plan and terms on your behalf.

IRS Payment Installment Agreements

Once both parties agree on the terms, the IRS tax payment installment agreements may be set up in various ways:

  • Direct Debit from your bank account
  • Payroll Deduction from your employer
  • Regular Installment Agreement
Payment Plans

The IRS offers payment plans. Call us to find out more details

If you enter into an installment agreement, your payment amount will be based on your ability to pay and will be a manageable amount that can be maintained over the duration of the installment agreement.

Direct debit, or payroll deduction installment agreements, provides an opportunity to make timely payments automatically, and therefore, these payment methods may reduce the possibility of defaulting on the agreement. Let us be your ally looking out for your best interests, and maintaining your rights during this process.

IRS Tax Penalties
Every day that taxes are left unpaid interest is compounded daily and subject to a monthly late payment penalty. Penalties can also be assessed for failure to file a tax return.
The IRS understands situations of cash flow, which do not allow a large payment in a lump sum. This is the reason for IRS installment agreements and payment plans. Our tax relief professionals can in many cases reduce, or possibly get waived those extra penalties.

Benefits & Pitfalls of Payment Plans With the IRS
An Installment Agreement is a payment arrangement whereby the government allows a taxpayer to pay liabilities over time. Once a payment plan is established, the IRS will not take enforced collection action, including the levy of bank accounts or wages, as long as the taxpayer remains current with all filing and payment obligations. Interest and penalties will continue to accrue until the outstanding balance is satisfied.

Additionally, a tax lien may be filed as part of the terms of the installment payment agreement.

Whether the IRS is demanding full payment up-front or a payment plan that is substantially higher than you can afford to pay, we can negotiate an arrangement for the lowest possible monthly payment and also provide you with various options for making those payments.

Since the government will not agree to an installment agreement until all necessary past due tax returns are filed, we can also prepare and file any and all returns to bring you into compliance before arranging a payment plan.

If you cannot afford to make monthly payments and do not qualify for another type of tax relief, such as an offer in compromise, we will negotiate to have your account placed in a “currently not collectible” status. By doing so, you will not be required to make any payments and the IRS will not pursue collection action. This option may provide you with an opportunity to wait for the collections statute to run and the liabilities to expire.