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IRS Payment Plans | IRS Installment Agreement | Florida

Updated: Nov 11


IRS Payment Plans There are a number of IRS payment plans (#IRSinstallmentagreements) available to help you get some sort of resolution to your tax bill. If you don’t qualify for an Offer in Compromise, these IRS installment agreements can stop the IRS from issuing a IRS levy or IRS wage garnishments. In some cases, an IRS payment plan can even stop the IRS from filing a Federal Tax Lien.

What is an IRS payment plan?

Believe it or not there are new laws that have gone in to effect to help taxpayers that have trouble paying their tax debt. The IRS now offers a number of payment plan options which allow you to pay all (or some) of your tax debt over a period of time. Know this: The IRS has two (2) goals always. Collect money (the amount collected is sometimes irrelevant) and close a case. An IRS Installment Agreement, an IRS settlement - Offer in Compromise and being placed into Currently not Collectible status accomplishes the agency's goals.

These IRS payment plans are separate from the Offer in Compromise program. You may qualify for these IRS payment plans even if you do not qualify for an Offer in Compromise.

While the structure of IRS payment plans may vary depending on the specific facts of your case, generally speaking, an IRS payment plan will allow you to pay your tax debt over time. When you enter into an IRS payment plan, penalties and interest will continue to grow. You will end paying at least twice what the tax debt actually is. You will feel like "you are going nowhere fast."

What is an IRS installment agreement?

An IRS installment agreement (#IRSpaymentplan) is the technical term for IRS payment plan. These terms can be used interchangeably. When we are speaking with the IRS, we would refer to these IRS payment plans as installment agreements.

Due to everyday people tending to use the term “payment plan”, that’s the phrase we will use here.

How do IRS payment plans work?

To start, in order to qualify for IRS payment plans, you must be in tax compliance. This means that you have filed at least the past six years of returns and made any required estimated tax payments (if applicable). If you are not currently compliant, that’s alright. Our teams of tax professionals help our clients file unfiled tax returns and then apply for an IRS installment agreement.

The exact structure of IRS payment plans depends on several factors:

1. The amount of your tax debt - The amount of your tax debt matters because it will determine which IRS payment plans you’re eligible for:

  • Less than $10,000: Guaranteed Installment Agreement

  • Less than $50,000: Streamlined Installment Agreement (Fresh Start Initiative)

  • Less than $100,000: 84 Month Installment Agreement (Pilot Program)

  • Greater than $100,000 generally requires special negotiations with a Revenue Officer

2. The age of your tax debt - Unless you are entering into a partial pay installment agreement, the IRS will require the full balance of your debt be paid prior to the collection statute expiration date. This is generally 10 years after you file your tax return.

So while you may be able to pay your taxes over 72 months in a Streamlined Installment Agreement, the IRS will not allow you to do that if you only have 60 months left on your collection statute expiration date. In that case, you’d be limited to a 60 month repayment plan.

3. Your income - Your income generally only matters if your tax debt is over $50,000. If you qualify for the Streamlined Installment Agreement, very little income information is required. However, if your debt is above $50,000, you will be required to provide detailed information about your income. The IRS may require you to pay as much as you are able to afford in this case.

This is where an experienced tax attorney comes into play. We know how these income statements work. We know which expenses are allowable and know how to argue with the IRS about how much you should be required to pay. Without a tax attorney negotiating your installment agreement, you may end up overpaying or worse! If IRS payment plans look like an option for you, but before you agree to anything with the IRS contact us for a free consultation with a tax attorney

Now more than ever, due to COVID-19, the IRS is offering flexible IRS payment plans to help you resolve your tax debt. The IRS will soon have more tax debt than ever before. More than the agency will be able to handle. Take advantage of the circumstances. To do so, you will require an experienced IRS Tax Attorney to navigate your tax resolution .

Take back control of your financial future. Providing both immediate relief and long-term solutions, tax resolution could be the answer you have been looking for. Our tax attorneys strive to reduce your tax bill as much as possible and get you the best tax resolution possible. The above article is written by the tax professionals at Flat Fee Tax Relief. Over the past decade, we have been providing valuable IRS tax debt help at a very affordable fee. Our teams are strategically located in Clearwater, Florida, and San Diego, California. This allows access to to our clients and the IRS from 8 A.M. Eastern to 6 P.M. Pacific. Our hours of operation is a tremendous advantage when stopping an IRS levy.



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