Owe IRS, Need a IRS Payment Plan – Affordable Tax Solutions, Former IRS – Installment, Payment Plans

by Fresh Start Tax | May 17, 2013 | IRS Payment Plans

Owe IRS, Need a IRS Payment Plan – Affordable Tax Solutions, Former IRS – Installment, Payment Plans    1-866-700-1040

 
We are comprised of former IRS agents and managers who know the affordable tax solutions and tax systems that can get you the tax relief you need.
We have over 60 years of direct work experience at the Internal Revenue Service in the local, district, and regional tax offices of the IRS.
We have worked thousands of cases since 1982 and are A+ rated by the Better Business Bureau.
If you owe the IRS and need a payment or installment agreement contact us today to find the right payment and the affordable tax solution to result to permanently and immediately resolve your IRS matter problem.
 
The IRS says several programs and options to deal with your back tax debt. Before deciding on a program or a solution it is best to analyze your current financial statement to put you in the program that fits you the best.
 

Owe the IRS

 
The Internal Revenue Service works all their cases differently and one of the  key factors that are is important to IRS when you owe IRS is the amount of money you owe them and the  length time it will take you to pay your money back to IRS.
 
For larger cases,the IRS  require a form 433-F which of the IRS version of a financial statement.
For smaller cases the streamlined agreement may be the affordable tax solution that fits you the best.
Contact us today and we will review your case and give you a free initial tax consultation and see which program can suit your current financial needs when you owe the IRS.
 
 

The Streamlined Installment/Payment Agreements

 
 
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
Under the Fresh Start initiative, the maximum dollar criteria for streamlined installment agreements has been raised from $25,000 to $50,000 and the maximum term has been raised from 60 months to 72 months.
 
These installment agreements generally do not require a financial statement, but a limited amount of financial information may be required in the application process.
 
The Streamlined Installment Agreement criteria is divided into two categories,

• balance due of $25,000 or less,

• and balance due $25,001 to $50,000.

 
The criteria to qualify for streamlined installment agreements with a balance due of $25,00 or less are:

• You owe $25,000 or less, at the time the agreement is established.

• If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.

• The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.

• You must be compliant with all filing and payment requirements.

• Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).

• Defunct businesses, including any type of entity and any type tax (Form 940, 941, 943, etc.).

• Operating businesses are limited to income tax liabilities only (Form 1120).

• The criteria to qualify for streamlined installment agreements with a balance due of $25,001 to $50,000 are:

• You owe $25,001 to $50,000, at the time the agreement is established.
• If you owe more than $50,000, you may pay down the liability before entering into the agreement in order to qualify.
  The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier
• You must be compliant with all filing and payment requirements.
• Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
  Businesses are limited to defunct sole proprietors who owe any type of tax (Form 940, 941, 943, etc.).
• You must enroll in a Direct Debit Installment Agreement.
• A limited amount of financial information may be required during the application process.
• Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A (PDF) or Form 433-F (PDF)).

 
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.
Before you apply:

• File all required tax returns;

• Consider other sources (loan or credit card) to pay your tax debt in full to save money;

• Determine the largest monthly payment you can make ($25 minimum); 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;

• $105 for a standard agreement or payroll deduction agreement; or

• $43 if your income is below a certain level.

Understand your Payment/Installment Plan, avoid default

• 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:

• When an installment/payment plan is being considered;

• While an agreement is in effect;

• For 30 days after a request is rejected, or

• During the period the IRS evaluates an appeal of a rejected or terminated agreement.

Owe IRS, Need a Payment Plan – Affordable Tax Solutions, Former IRS – Installment, Payment Plans