Platinum Tax Defenders Offers Top Ways To Negotiate An Installment Agreement

Platinum Tax Defenders has years of experience helping clients successfully negotiate payment plans with the IRS. If you owe the IRS and can’t pay taxes in one lump sum, there are payment plan options for you. Entering into one of these IRS payment plans can be beneficial if you’re struggling to pay back taxes. If you’re struggling to pay a larger-than-expected tax liability, a payment plan may be the right option for you. Platinum Tax Defenders offers free consultations for those seeking help with payment plans. If you think you may qualify for a payment plan, contact the professionals at Platinum Tax Defenders today. For now, Platinum Tax Defenders takes a closer look at six ways to arrange a payment plan with the IRS. Learn who may qualify for each payment plan, and how you can apply to enter into these plans.

First, Make Sure Your Up to Date With Your Tax Returns

Before you try and enter into a payment plan, you must be up to date on your IRS tax filings. If you haven’t filed all your tax returns, you’ll need to do so before applying for an IRS payment plan. Make sure you are current with this past year’s tax return and any other past year’s tax return. 

Short-Term Payment Agreement

A short-term payment agreement is for taxpayers who owe $10,000 or less. Taxpayers must pay these debts within 120 days. This type of payment plan allows taxpayers to make monthly payments to pay their debt in full. Short-term payment agreements are also called guaranteed installment agreements. These types of payment plans are one of the easiest kinds of IRS payment agreements to enter. You’re in if you meet the qualifications for this payment plan and agree to the terms. Platinum Tax Defenders can help you determine if you qualify for a short-term payment agreement.

Individual Installment Agreement

An individual installment agreement is for taxpayers who owe less than $50,000. Taxpayers must pay these debts within 72 months. There is a fee to apply for this payment program, which is between $42 and $120. An individual installment agreement is the most well-known IRS payment plan. When taxpayers enter into an installment agreement, they agree to pay the IRS in full by making regular monthly payments. If you owe between $25,000 and $50,000, you’ll need to provide the IRS with records of your income and expenses. When negotiating a monthly payment amount, you should suggest a reasonable amount you can pay. Platinum Tax Defenders can help you negotiate an installment agreement with the IRS by determining an appropriate monthly payment amount.

High Debt Installment Agreement

If you owe $50,000 or more and can’t pay within 120 days will not qualify for a standard installment agreement. Instead, taxpayers will have to apply for a high-debt installment agreement. To apply for a high-debt agreement, you must provide the IRS with financial information, including:

• Monthly income
• Living expenses
• Lines of credit and accounts
• Assets you own

The IRS requires financial information as they determine high-debt installment agreements on a case-by-case basis. Platinum Tax Defenders can help you resolve your tax debts if you owe $50,000 or more.

Small Business Agreement

If you own a small business and owe $25,000 or less, you can enter into a small business payment plan. With this type of payment plan, you don’t need to provide financial documents to apply. However, if you owe between $10,000 and $25,000, you can only pay via direct debit. If you own a small business, Platinum Tax Defenders can help you settle your tax debts. The team at Platinum works with both individuals and small businesses on tax debt assistance.

Undue Hardship Extension

The undue hardship extension payment plan is generally for those who can’t use any of the above payment plans. If you can prove that paying taxes will cause undue hardship, the IRS may grant you this payment plan. To be eligible, taxpayers must provide detailed financial information, including:

• Itemized list of income and expenses from the last three months
• Statements of all assets and liabilities 

Offer in Compromise

An Offer in Compromise is for those who can’t use any other payment plan on the list. An Offer in Compromise is one of few IRS payment plans that allow you to pay less than you owe. The IRS does not approve everyone who applies for an Offer in Compromise. To qualify, you must prove that paying your taxes in full will cause you economic hardship. Additionally, you cannot be able to pay your total amount through other payment plans. If the IRS determines whether you have the means to pay in different ways, you will not receive approval. To apply for an Offer in Compromise, you must provide the IRS with:

• Records of your monthly income and living expenses
• Details about your financial accounts and lines of credit
• Records of any assets you own or liabilities you have

Platinum Tax Defenders Has Experience Negotiating Payment Plans 

The experts at Platinum Tax Defenders have years of experience negotiating payment plans for taxpayers. Recently, they were able to get one client’s debt down from over $140,000 to just $100 with an Offer in Compromise. Applying for IRS payment agreements can be enormously helpful when struggling with back taxes. However, understanding who qualifies for each payment plan can be hard and confusing. For that reason, taxpayers should consider consulting the tax relief professionals at Platinum Tax Defenders. If you’re dealing with back taxes and want help finding the best payment plan for you, contact Platinum Tax Defenders. Our tax relief experts can help you find the best payment plan for your unique circumstances. Also, Platinum Tax Defenders offers special 60-month financing for those needing assistance paying for tax relief services. Call Platinum Tax Defenders today for a free consultation.