San Jose, CA and IRS Payment Plans

Metro Area- San Jose, Sunnyvale, Santa Clara, CA MSA

If you live in San Jose metro area and you have been facing IRS problems including any personal or business tax problems, then there is help available. For paying your unpaid tax debt, you can always opt for IRS payment plans. It is possible to pay your tax debt over a period of time in installments. This not only saves you from the burden of paying all the tax debt together at a time, but it also saves you from further tax problems with the IRS.

Monthly installment agreement (IA) is a popular way of paying your IRS tax debt. It is possible to get an installment payment plan for 60 months from the IRS for paying whatever type of tax debt you owe. To get the desired payment plan, you will have to negotiate with the IRS based on your financial situation.

However, to become eligible for IRS payment plans, you should have all your unfiled and present tax returns filed. If you haven't filed your due tax returns in the past, you will not be eligible for payment plans. In case of self-employed taxpayers, quarterly estimated tax payments for the current year should be cleared to become eligible for the payment plan. In case you have employees, you should pay all payroll tax deposits and file form 941 filings to become eligible for an IA.

However, there are certain disadvantages of IAs. You will have to keep paying interest and penalties on the amount you still owe. You will also have to pay an interest, the rate of which may be 8% to 10% per year.

If you do not have enough cash after spending on your necessary living expenses, you will not be able to negotiate a payment plan with the IRS. In such situations, you can submit an offer in compromise, ask for suspension of collection activities or file for Chapter 7 bankruptcy.

You can hire an expert tax relief professional such as an IRS licensed enrolled agent to negotiate the payment plan with the IRS on your behalf.

Making Monthly Payments

Once you receive the notice of approval from the IRS, you can send your payment to your local service center. You can send a check, money order or a cashier’s check to the service center.

You have two other options for making payments

You can use direct payroll deduction. Request a payroll deduction on Form 2159, Payroll Deduction Agreement. Your employer will send the money to the IRS after deducting it from your payroll.

You can use a direct debit. You can instruct the IRS to automatically debit your checking account each month.

Get expert tax help today by calling Mike Habib, EA at 1-877-788-2937

Tax problem resolution services, IRS tax help and tax relief services in San Jose, Sunnyvale, Santa Clara, Silicon Valley, Bay Area, and other cities in Northern California, San Francisco, Oakland region