How to Settle Your Tax Debt by Negotiating a Payment Plan With the IRS: What You Need to Know if You Can't Afford to Pay Your Tax Bill in Richmond, VA - Petersburg, VA

Metro area of Richmond - Petersburg VA MSA

Like many other taxpayers, if you cannot afford to pay your tax bill in Richmond - Petersburg region, then it is possible to get tax help from expert tax relief professionals such as tax attorneys, CPAs or Enrolled Agents. You can settle your tax debt by negotiating a payment plan with the IRS.

What is an IRS payment plan?

An IRS payment plan is an arrangement with the IRS, wherein you can pay your tax debt over time. This is a good option for taxpayers because it allows you to divide the total tax dues into smaller monthly amounts, which you can afford.

When you have a payment plan established, the IRS will not start collection actions against you and will not place levy on your bank accounts or wages. But for that you should keep paying all your payment obligations and should file regular tax returns on time.

During this time, until you complete your total outstanding tax dues, interest and penalties would accrue. The IRS may also place a tax lien as part of the terms of the payment plan agreement.

How to Negotiate an IRS Installment Agreement and Set Up a Payment Plan for Your Tax Debt

If you, as a taxpayer, cannot afford to pay the due tax debt immediately, you can ask for a payment plan, which is a reasonable payment option. Payment plans help you by allowing you to pay your tax debt in smaller and manageable amounts.

The IRS will allow you payment arrangement for your tax debt. However, you have to qualify for such payment plans. To qualify for a payment plan you must fulfill the following rules and provide the following information:

  • You must have filed all tax returns
  • You need to disclose all your assets including all cash and bank accounts
  • Your bank account should not have adequate cash. Bank accounts here mean checking, savings, money market, or brokerage accounts
  • You must not have the capacity to borrow the money you owe in tax from other sources
  • You must not have adequate equity in a retirement account to borrow money or liquidate
  • The amount you owe in taxes decides who will handle your negotiations
  • IRS Revenue Officers do not handle cases where the amount owed is less than $25,000
  • You will have to complete a personal financial statement for individual taxpayers. If you have a business, you will have to fill a business financial statement
  • The IRS decides the allowable monthly expenses for individuals. It is compared against your actual monthly expenses
  • The difference between your monthly income and your allowable monthly expenses is what you will pay the IRS every month
  • You will have to continue these monthly payments till you fully pay the outstanding tax liabilities.

At our firm, we negotiate the lowest possible payment plans as allowed by law. You will not be in a financial bind.

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 Richmond, Petersburg, Hopewell, Colonial Heights and other cities in the state of Virginia

Client Reviews
★★★★★
Mike has given us peace of mind! He helped negotiate down a large balance and get us on a payment plan that we can afford with no worries! The stress of dealing with the IRS is huge and Mike helped us through it all. The peace of mind is invaluable, thank you Mike! April S.
★★★★★
Mike Habib - Thank you for being so professional and honest and taking care of my brothers IRS situation. We are so relieved it is over and the offer in compromise process went just as you said. Mike is very professional and will give you honest answers to the OIC process and you can really trust him. You won't be sorry you chose him! Joe and Deborah V.
★★★★★
Mike is a true professional. He really came thru for me and my business. Dealing with the IRS is very scary. I'm a small business person who works hard and Mike helped me see that they are not that scary after all. He was always there with the answers I needed and was very good about calling me back which I appreciated since your first reaction is to freak out and ask a million questions. He solved a messy case and worked very hard to resolve it. His rates are VERY reasonable for the amount of work he does! I give him my highest recommendation! Marcie R.
★★★★★
Mike was incredibly responsive to my IRS issues. Once I decided to go with him (after interviewing numerous other tax professionals), he got on the phone with the IRS immediately (as in the same day I signed with him) to squash an impending issue. And he worked directly with them to quickly come to a resolution I am very happy with. I'd highly recommend reaching out to Mike to see if he can help you with any IRS issues. I'm very satisfied! Marshall W.
★★★★★
I’ve seen and heard plenty of commercials on TV and radio for businesses offering tax help. I did my research on many of them only to discover numerous complaints and unresolved tax issues. I found Mike Habib through my own online search and contacted him. He was very professional with great communication, always answering my questions and concerns. Mike resolved my complicated tax problem just as he said he would. I would definitely recommend his services to family and friends. Nancy & Sal V.
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