If you owe back taxes to the IRS and are having trouble coming up with the funds to pay off your Federal tax debt, there are options to consider. The IRS tax payment plan is a way for taxpayers who need help filing back taxes with the federal government to pay back the amount they owe over a period of time without the threat of increased collection actions. The IRS allows several types of IRS tax payment plans, including an automatic installment agreement plan. Other types of IRS Payment Agreement plans include partial-pay installment agreements, streamlined installment agreements, offer in compromise resolutions and stair-step installment agreements. There are various benefits, problems and requirements for each of these types of payment plans.

If you owe more than $50,000, or you can’t reasonably pay the outstanding balance owed in less than six years, it’s important to come up with a payment plan that the IRS will approve. The team of experts here at Community Tax can help you devise a solid IRS installment payment plan you’ll be able to realistically live with.

Your request will begin with a Collection Information statement found on Form 433-A. An IRS collector will analyze your information to determine what amount you can pay per instalment. These payment amounts are done at the discretion of the Internal Revenue Service.

When proposing a payment plan, offer to pay the amount of your income minus your necessary living expenses. This will be the cash you have left over after your life necessity costs. It’s unwise to propose a payment plan you can’t afford just to better your chances of approval. Once approved you won’t be able to renegotiate so make sure it’s a payment plan you can feasibly handle on your current wages.

When you propose the agreement, make the first payment concurrently. Continue to make these monthly payments by using payment slips and bar-coded envelopes provided in any notice you may have received, even if the IRS hasn’t yet approved your IRS tax payment plan. Collectors are more willing to work with taxpayers that make voluntary payments. You can make payments online, over the phone, through check or money order, and with a credit card, but it’s important to always pay without defaulting.

If you need an IRS tax payment plan, choosing Keystone Tax will help you save time, money and stress. Whether you require assistance with filling out an IRS tax payment plan form or checking a pre-existing IRS tax payment plan balance, we can help you pay off what you owe to the government quickly and efficiently.