Make a Payment Plan Arrangement to Pay Back IRS Taxes, Former IRS Can Help

May 2, 2014
Written by: Fresh Start Tax
Fresh Start Tax

 

If you need to make a payment plan or payment arrangement to pay back taxes with the Internal Revenue Service you call us today for free initial tax consultation.

We are affordable tax experts that can get you the payment agreement you are looking for to match your current financial situation.

We are a full service tax firm that specializes in IRS and state tax relief.

Our firm has over 60 years of working directly for the Internal Revenue Service in a local, district, and regional tax offices of the Internal Revenue Service.

 

Monthly payments through an installment agreement with the IRS

You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately.

However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full.

 

You must be aware of the following – Before you apply:

 

  • File all required tax returns is a must;
  • Consider other sources (loan or credit card) to pay your tax debt in full to save money;
  • Determine the monthly payment you can make; and
  • Know that your future refunds will be applied to your tax debt until it is paid in full.

 

Fees for setting up an installment agreement:

 

  • $52 for a direct debit agreement;
  • $120 for a standard agreement or payroll deduction agreement; or
  • $43 if your income is below a certain level.

 

Individuals: apply for an installment agreement

Fresh Start Tax LLC can apply online if you owe $50,000 or less in combined individual income tax, penalties and interest;

If you owe more than $50,000, we will need to complete Form 433-F, Collection Information Statement .

When you call us we can walk you through the process free initial tax consultations.

 

Small Businesses: apply for an In-Business Trust Fund Express installment agreement

Fresh Start Tax LLC will apply online if you owe $25,000 or less in payroll taxes;
Understand your agreement, avoid default

To keep your account in good standing:

 

  • Pay at least your minimum monthly payment when it’s due (direct debit or payroll deductions make this easy);
  • Include your name, address, SSN, daytime phone number, tax year and return type on your payment;
  • File all required tax returns on time;
  • Pay all taxes you owe in full and on time (contact us to change your existing agreement if you cannot);
  • Continue to make all scheduled payments even if we apply your refund to your account balance; and
  • Ensure your statement is sent to the correct address, contact us if you move or complete and mail Form 8822, Change of Address (PDF).
  • If you don’t receive your statement, send your payment to the address listed in your agreement.
  • There may be a reinstatement fee if your agreement goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, contact the IRS immediately.

 

The IRS will generally not take enforced collection actions:

1.  When an installment agreement is being considered;
2. While an agreement is in effect;
3. For 30 days after a request is rejected, or
4. During the period the IRS evaluates an appeal of a rejected or terminated agreement.

 

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