If you are unable to pay the full amount of your taxes for any reason, you might be concerned that the IRS will penalize you. The truth, however, is that you might be able to set up a payment plan, thereby releasing you from the financial burden of having to pay your taxes all at once.
By contacting a qualified IRS installment agreement lawyer, you will gain a powerful advocate who can help negotiate with the IRS to get you a payment plan that works for you. We will discuss how to go about getting the right lawyer in a moment. But first, let’s talk about payment plans and how you can know if you’re eligible for one.
What Is a Payment Plan?
The most basic definition is a series of payments that you make until you’ve paid off the full amount of what you owe. When it comes to the IRS and your taxes, you might owe only a little or a significant amount of money.
But regardless of how much you owe, you simply might not be in a position where you can pay a lump sum all at once. Thankfully, the IRS understands this and offers payment plans. Plus, this is a better way for the IRS to ensure that they get their money, even if it’s little by little.
If you are concerned about tax liens, a payment plan will likely help you avoid such consequences. There are circumstances in which a taxpayer could still be subject to liens and other penalties even while on a payment plan, but those are mostly in extreme cases of delinquency.
It is important to note, however, that while you may avoid more severe penalties like liens, you will still be charged interest fees and fines until you complete your payment plan.
Am I Eligible for a Payment Plan?
To determine whether you are eligible for an IRS payment plan, you first need to see how much you owe in taxes. Your tax situation determines which payment methods you can use.
Payment plan options are as follows:
1. Long-term (monthly installation agreement)
2. Short-term (full payment within 120 days)
3. Full payment
Furthermore, you have to go through different channels to apply for certain payment options. For example, taxpayers can only apply for short-term plans by calling or emailing the IRS. But you may apply for other payment plan options online.
To qualify for a long-term plan as an individual — where you make monthly payments until your debt is paid in full — you must owe $50,000 or less. This is your total tax debt, which includes interest and penalties.
As for short-term payment plans, individual taxpayers must owe less than $100,000.
To qualify for a long-term payment plan as a business owner, you must owe $25,000 or less. You may apply for a long-term plan online.
Before you can apply online, you will first need to register with an account. In doing so, you will be asked a series of questions to confirm your identity. What’s more, you must provide one of the following:
1. Mobile phone number registered in your name
2. Financial Account Number
3. Activation code
If you are unable to prove your identity, you must request an activation code. The IRS will then mail you this code within five to ten business days. After receiving your activation code, you will be able to log into your account and apply for a payment plan option.
Please note that while the monetary figures discussed above determine whether you are eligible, the final decision is still up to the IRS as to whether you are approved.
Once you submit your application online, you will typically get approved in a matter of seconds. But if you are having difficulty obtaining approval for a payment plan, you may need to contact an IRS installment agreement lawyer to assist you.
The Law Offices of Mary E. King communicate with the IRS on a regular basis and are powerful advocates for taxpayers seeking assistance with tax-related matters. You are encouraged to contact IRS installment agreement lawyer Mary King if you want to ensure that you get the best results in your quest to obtain a favorable payment plan.
Call the Law Offices of Mary E. King Today
We invite you to contact IRS installment agreement lawyer Mary E. King if you need assistance setting-up a payment plan to pay your taxes. We have extensive experience successfully handling tax matters of all kinds and can help negotiate an arrangement that suits your financial situation.
The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.