TAX PAYMENT PLANS
You might not have the financial means to pay off your full tax debt in one lump sum. If you don’t have the means, a payment plan that works for you might be your better option. A payment plan is also called an installment agreement. An installment agreement is when you negotiate a deal with the IRS to pay your debt over a specified period.
The IRS encourages you to pay back your tax debt in full as soon as possible. However, paying back taxes in full isn’t feasible for everyone. It’s especially hard for those who owe thousands. When an individual or business is unable to resolve a tax debt immediately, an installment agreement is a reasonable option. An installment agreement is also an option if the taxpayer doesn’t qualify for other tax relief programs.
WHO IS ELIGIBLE TO APPLY FOR A TAX PAYMENT PLAN?
- To be eligible for an installment agreement, you must be in good standing with the IRS. Your tax return filings must also be up to date for the last six years. Guidelines also exist regarding how the IRS determines the payment amount and timeframe for the agreement. These guidelines include the following:
- If you owe less than $10,000, and all previous tax returns are current. You must also agree to pay off the balance within 36 months
- For those who owe between $10,001 and $24,999 in good standing, you can enter a streamlined payment plan. Collection activity will cease with this type of payment plan. The IRS reduces interest and penalties and allows you to pay the debt over many months.
- If you owe between $25,000 and $50,000, and your returns up to date, you can enter the Fresh Start Program. Under this program, the IRS allows taxpayers to have the payments deducted automatically from their bank accounts each month. The taxpayer agrees to pay down the full debt within 72 months. After a few months of consistent payments, the taxpayer may apply for penalty abatement.
- Those who owe between $50,001 and $99,999 are considered high-owing taxpayers. These individuals must provide extensive financial disclosure information. Tax resolution experts Platinum Tax Defenders can help you enter a payment plan that works for you.
- If you owe over $100,000, a Revenue Officer will review your case. You will have to provide supporting documents to verify your income, expenses, and assets.
At Platinum Tax Defenders, we deal with Revenue Officers every day. We know how to navigate the maze, protocols, and laws of the IRS, so you don’t have to.
HOW DO I SET UP A TAX PAYMENT PLAN?
While a taxpayer is certainly able to set up a payment plan without representation from a tax resolution company, the taxpayer may not be able combine this plan with a penalty abatement request (a request to remove any penalties associated with the tax debt) and therefore could be held liable to pay the IRS more than they are required. Therefore, even if your tax debt is as low as $5,000, it is still advisable to seek out the help of a tax resolution company like Platinum Tax Defenders to review your individual circumstances and determine if additional tax resolution services are an option.
HOW LONG DOES IT TAKE FOR THE IRS TO APPROVE A PAYMENT PLAN?
The time it takes to apply for and then get approved for a payment plan or Installment Agreement varies. It really depends on the specific situation of the taxpayer. Sometimes filing for a payment plan and getting one approved can take as little as 15 minutes, or it can take months. The time it takes all depends on the taxpayer’s individual tax situation, the type of agreement he or she need, and how he or she plans to communicate with the IRS. Working with a reputable tax resolution company like Platinum Tax Defenders can save taxpayers valuable time that they’d otherwise be spending on the phone with the IRS. Plus, we have years of working with the IRS, which means we can often resolve any issues and come to an agreement much quicker than a normal taxpayer could.
CAN I HAVE TWO IRS PAYMENT PLANS AT THE SAME TIME?
If while in the middle of paying your back taxes through a payment plan with the IRS, you run into an additional debt that you can’t pay back immediately, you can add on the new tax debt to your existing payment plan. There will only be one installment agreement that will include all the tax years that you owe. However, if you do have a new debt to include in your current tax payment plan, you should contact the IRS, or your tax resolution company like Platinum Tax Defenders, to have it included asap. This is because your new balance will automatically go into default if you don’t pay it back in time.
WHAT IF I DON’T QUALIFY FOR A PAYMENT PLAN?
If you cannot afford to make monthly payments, or you do not qualify for an IRS Installment Agreement, Platinum Tax Defenders can help you qualify for another form of tax relief, such as an Offer in Compromise. We can also help in getting your account to a “Currently not Collectible” status so that you will not be required to make payments and the IRS will not pursue collection action for a period.
The IRS’ definition of living expenses and the actual cost of living are often significantly different. That’s why, at Platinum Tax Defenders, we do our best to obtain a payment plan that works best for our clients, with each of their unique situations in mind.
Platinum Tax Defenders
WHO WE ARE
Platinum Tax Defenders is a full-service tax resolution firm in Los Angeles that has been helping taxpayers resolve their IRS and State tax issues since 2011. Our team of tax attorneys, accountants, and enrolled agents have a combined more than 90 years of experience in the financial services industry. Our team is ready to provide tax relief services to clients facing wage garnishments, bank levies, liens, and other challenges.
WHAT WE DO
Platinum Tax Defenders is a full-service tax resolution firm that includes a tax attorney, IRS enrolled agents, and certified public accountants specializing in providing tax relief services for taxpayers facing IRS or State tax debt. We work with the IRS on your behalf to come up with reasonable payment options and settlements. Our tax professionals are knowledgeable and experts in tax negotiations. The consequences for unpaid taxes vary by each individual taxpayer’s situation. But unpaid tax debt can lead to wage garnishment, property liens, and bank account levies.
Platinum Tax Defenders will help you reach a tax resolution plan before it’s too late. We offer fast response protection to our clients and a commitment to gaining major tax reductions. Whether this is your first time facing a tax problem, or you have previously hired a tax relief firm in Los Angeles to resolve your tax debt, we have a track record of consistently garnering IRS settlements for our clients.
WHY TRUST US
At Platinum Tax Defenders, we’ve developed an impeccable reputation for doing what’s best for our clients, 100 percent of the time. We are honest and upfront with you about your tax debt situation, and the type of tax resolution services we can provide. Each individual tax situation is different, and we’ll do whatever we can to negotiate with the IRS to help you reach a tax relief plan that works for you. We are experts in our field and work diligently to resolve the specific tax issues that each of our clients face. Platinum Tax Defenders offers fair and honest tax resolution services, and you can count on us to operate professionally and legally.
Many tax relief services in Los Angeles tend to make promises that are unrealistic. You can count on us to always be honest and upfront about your financial situation, and what type of tax resolution results you should expect.