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 - Petersburg
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