Will the IRS Accept a Payment Plan for Help with Taxes?
Yes, the IRS will accept payment plans over time. We are Denver based tax relief specialists providing IRS tax debt help to our clients by setting up Installment Agreements with the IRS. There may be other options, such as an Uncollectable Status or an Offer in Compromises that may be even better, but if you are in trouble with the IRS, the Installment Agreement to pay over time is an option. There are different ways to set up payment plans and many considerations that affect how to go about the process. If you want more detailed explanations, please read on about the IRS payment plan help we can offer you. If you fear what the IRS is going to do next and you want relief NOW, we can work with the IRS for you. We are licenced professionals and we do not use sales people to “SELL” you anything. By utilizing our IRS tax debt help, our Denver professionals will guide you through the IRS’s labyrinth of rules and regulations. When dealing with the IRS you need the peace of mind knowing that we have your best interest at heart and we are skilled at negotiating with this difficult entity known as the IRS.
What are Some IRS Tax Debt Help Solutions I Can Utilize?
We set up installment agreements with the IRS on a regular basis. Sometimes the solution may be the home run…1) the IRS settles for less money than is owed--you pay it and move on. 2) In other cases, the solution may be to get your account placed in uncollectible status, so the IRS just leaves you alone until you get on your feet or the statute of limitations on collections expires. These are super solutions and worthy of looking into, but what if you don’t qualify? Well, you must do SOMETHING, or the IRS will do bad things to you, such as levies and liens. Seizures of your stuff is never a good thing! 3) If there isn’t a better solution that reduces the debt, sometimes the best thing you can do is to contact us for expert tax debt help in the Denver area in order to get assistance setting up a Payment Plan that you can afford and pay over time.
What are Considerations for Payment Plan Help?
Installment Agreement is the IRS moniker for a Payment Plan. Variables we consider when providing IRS payment plan help are the type of taxes, the amount of taxes due, and your particular individual situation and desires.
The type of tax matters as far as what the IRS will do. The IRS has different rules for a payment plan if the taxes are for a business IRS debt or a payroll tax issue than they do for individual taxes. A payment plan for a business is much more difficult and complicated than your strategy would be for a personal tax situation.
IRS Business Tax Debt Help
We also help businesses with tax debt help in Denver. Due to the amounts owed for payroll taxes, your individual situation and desires are extremely urgent. A portion of any payroll tax due to the IRS is called the “trust fund”. This is an amount that the IRS can come and collect from you personally in addition to collecting from the business. In most payroll tax cases the strategy involves applying any payments you can to the trust fund before the installment agreement is set up to avoid personal liability for the business debt. Once the payment plan is set up, the IRS designates all payments to their best interest first (the portion of the debt that they can’t collect from you personally). Any time you have a payroll tax debt, the designation of the payment that you can make before a payment plan is set up is critical, and any payments that are made that are in excess of the REQUIRED installment payment must be designated separately.
In addition to providing tax debt help to Denver businesses, there is the consideration on whether the business is viable. If you are not 100% committed to keeping the business doors open, sometimes it may be best NOT to utilize IRS payment plan help for your business. Instead you would apply any and all funds available 100% to the portion that you are at risk personally. As mentioned, the installment payments made after the installment agreement has been set up with the IRS is designated to the Internal Revenue Services’ best interest. Sometimes even setting up a payment plan for a business can hurt you! Its critical to walk through your personal desires and situation to guide you through this process with someone who understands these rules!
As you can see, having an understanding of all this is extremely important before dealing with an IRS officer! Your personal situation and desires are of paramount importance in making these decisions. It can make the difference between keeping the tax problem inside of the business or having your personal home on the line.
Personal Tax Debt Help
Your personal situation can significantly affect what kind of tax debt help you need. how you set up your individual payment plan with the IRS for personal debts due. Another strategy our Denver based experts consider regards your personal situation with the IRS and how much time the IRS has to collect the debt you owe combined with the amount of tax due. There is a “statute of limitations” on how long the IRS has available to collect the debt. Given the right situation and with the right IRS payment plan help, we would want to apply the payments to the most current taxes, so that the old taxes expire and then go away. It’s a great situation to let the statute of limitations expire.
However, while working the statute of limitations can be great, it can also bite you badly in the wrong circumstance. For the tax debt help we offer to the Denver region, we consider your personal situation. What if you otherwise qualified for a streamline payment agreement and there wasn’t much time remaining on the Statute for collecting the debt? In a streamline agreement, the IRS will spread your payment somewhat automatically (if requested) over 72 months. IF YOU QUALIFY this can be a simple and perfect solution that doesn’t require all the hoops and financial information that IRS would otherwise require.
In any circumstance like this we would want to consider the impact of the statute of limitations on EACH year with a balance due. If you designated a payment to the newest balances, it’s possible that there would not be enough time left on the IRS collection statutes to pay off the older debt and thus no longer qualify for the streamline provisions for a payment plan. If that happened, then the IRS would need complete financial information and would look at EVERY expense you have. They have the power to say no to any expense that think is excessive or unnecessary. They can even demand that you move to a cheaper home, so you have more money to pay them! Once the IRS starts delving into your finances they are in complete control of your life. Reaching out for tax debt help and getting professional assistance is the best option to avoid this from ever happening. Sometimes providing the IRS financial information is the ONLY way to set up a payment plan. Whether you are living in Denver or anywhere in Colorado, it’s important to understand your personal situation and apply the rules to your best interest. Sometimes it is best for you to apply a payment the most current debt and let the old expire. But sometimes it’s best to apply it to the oldest debt so you don’t lose your opportunity to set up a streamline agreement. By doing this you can avoid all the financial information the IRS requires, so you keep in control of your future!
Qualified IRS Tax Debt Help
Who can you trust to walk you through to a solution you can live with? You can trust us for expert IRS payment plan help and much more regarding tax solutions. Because there are so many considerations that must be factored into a solution, unless you are extremely knowledgeable about IRS problems and the nuances that affect your personal situation, you cannot properly advise people on how to fix a tax problem. This applies even in solutions as “simple” as setting up a payment plan! You have a lot to lose if you choose someone who is only trained on how to collect a commission check rather than a professional who can guide you through this complicated process. Our tax debt help professionals are all salaried employees working out of Denver, Colorado who do not receive a commission for “upselling” you. Please check out the bios of the experts we have on staff and you will see that at a minimum the person you meet for a free initial consultation is not only licensed professionally but also has been qualified by outside organizations, such at the American Society of Tax Problem Solvers and/or the National Association of Enrolled Agents to prove competency in understanding these complicated rules. The cost to have an initial consultation with one of our professionals is the same as what you would pay an unlicensed and unqualified “sales person”. Free.
Free tips for DIY
If you are against professional tax debt help in Denver, we offer free advice for do it yourselfers! Not all situations are as tough as discussed above. Sometimes, if the taxes due are from the last two or three years and all other years are filed, the Streamline Installment provisions may be for you, and you may be able to fix it yourself. Because we are not going to be advising you on specific IRS payment plan help, please check out the link to the Streamline Provisions of the IRS internal revenue manual at https://www.irs.gov/businesses/small-businesses-self-employed/streamlined-processing-of-installment-agreements to make sure you are knowledge enough about the rules because you will be taking responsibility for the outcome.
I’ll highlight a few things that you should know. Keep in mind that these rules are NOT law. They are the IRS’s internal policy regarding the Streamlined Installment Agreement program. These rules can change, and additionally, the IRS cannot be FORCED into following them. However, they are currently available and very pro taxpayer! For anyone in Denver in need of tax debt help, these rules fortunately allow you 6 years to pay off the debt (if you otherwise qualify). They only apply if you owe $50,000 or less.
The general rule is that if you owe $50,000 or less, you can take the amount due and divide it by 72 (72 months = 6 years). As an example, if you owe $36,000, you could divide that by 72, the IRS will usually accept a payment of $500 per month if you requested it ($36,000 / 72 = $500.00).
If the taxes are older you may not qualify, because the debt may be too large to pay off over whatever is left of the statute of limitations, even if you otherwise would qualify. I really recommend having a professional help you if the taxes are more than 3 years old. But if the taxes are from newer IRS debt, it can be that simple. Please note that the balance for ALL years must be $50,000 or less, not EACH year. Note too, that a 72-month payment plan will actually drag out past 72 months. The reason is that the simple calculation that they use (and you can too) does NOT include interest and penalties that continue to accrue. Therefore, it will actually take some amount of time longer than 6 years to pay the balance with the continued interest and such.
A final point of knowledge that you must know is that if the balance is above $25,000, but less than $50,000, then additionally you will have to allow the IRS to automatically draft the amount from your bank if you want to avoid the IRS filing a notice of federal tax lien on your credit. This is generally not necessary if the balance is less than $25,000. If you need any IRS payment plan help or have questions on doing it yourself, give us a call.
If you don’t qualify for a Streamlined Installment Agreement, then what? The good news is that you can still utilize tax debt help to set up a payment plan. But it’s a much tougher process, and the IRS forms are designed to take every available penny other than the bare minimum you need to survive. As an expert in the industry having helped clients in Denver for decades, I’d honestly recommend getting professional tax help before trying to provide the IRS financial information. If things don’t go well when trying to do this on your own, then we are stuck with
what you just provided to the IRS. This can be very damaging to your case.
I hope this helps. If you are able to use this information to fix the problem yourself, I’m glad I could be of benefit to you. Please drop a note and let us know! If you have any questions or concerns, contact us today!