• If you're struggling to make ends meet and owe more than $25,000 to the IRS, don't lose hope just yet. You may still be qualified for an installment agreement. All you have to do is fill out a Collection Information Statement (Form 433F). The agency will then look into possible relief measures such as a short-term extension or an offer in compromise that could help ease your debt burden.
• If you are struggling to repay your debt within 120 days, don't hesitate to reach out to us. We understand that circumstances can be difficult, and we will work with you to create an installment agreement based on what you can afford. You can make those payments conveniently online or over the phone--whatever is most comfortable for you!
• If you are not able to pay the debt off within the given time limit, you can always request an extension due to hardship. However, it's important to keep in mind that doing this will result in more interest and late fees. So, what's the best possible solution? Work with your creditors and come up with a payment plan that works for both sides!
• An installment agreement with the IRS lets you pay off your taxes over time through a payment plan, rather than all at once. You'll make regular payments until the debt is gone. The benefit of an installment agreement is that you won't get penalized or accrue more interest on what you owe.
Lastly, if you're behind on payments or otherwise don't uphold the terms of the agreement, the IRS can take legal action against you.
When picking an installment plan, always have a conversation with a tax specialist to weigh your choices and determine what's best for you.
• Filing for an installment agreement with the IRS may help lighten the financial load of reimbursing taxes. To be eligible, the taxpayer must have submitted all required returns and made estimated tax payments. If the balance owed is less than $10,000 in taxes, penalties, and interest combined, then a "streamlined" installment plan can be requested.
• Anyone who owes the IRS less than $10,000 may be qualified for the streamlined installment plan. This type of plan just requires monthly payments and can be paid back over a period of six years with no financial disclosure form needed. On the other hand, those owing more than $10,000 will need to set up a regular installment plan by filing a financial disclosure form. If you cannot pay your taxes, the IRS may require collateral in the form of property liens. However, if you agree with them, they could give you up to 72 months to repay what is owed through a regular installment plan.
• The IRS has become more willing to work out payment plans if you have trouble paying your taxes on time. However, you must take action early and be proactive in negotiating with the IRS. Do not let your tax bill get too far behind. Listed below are your options and the steps you can take.
• The purpose of the IRS's 2011 Fresh Start program was to help those Americans who were falling behind on their taxes.
Even though the IRS has become more lenient, you still have to do your part.
IRS debt is no laughing matter, but even if you can't pay what you owe all at once, you must file your return.
"If you cannot pay the taxes you owe, don't despair--you can still file your return. Not filing usually results in penalties that are much higher than if you had just filed the return and paid what you could."
• If you're behind on your taxes, you might be asking yourself if you're eligible for an OIC or Offer in Compromise (OIC). An Offer in compromise is defined as an agreement between a taxpayer and the IRS to pay off their tax liability for an amount that's less than what they owe. The IRS will accept the OICas payment in full and agree not to take any further collection actions against the taxpayers.
• The OIC program is accessible to calculate tax paperwork and made estimated tax payments for the current year. You will also agree to follow any future filing and payment requirements.
• The largest offer you can provide is based on your capacity to pay and the equity you have in assets. The IRS will analyze your income, expenses, and asset equity when they determine the maximum amount you can accept.
• If you accept an offer from the IRS, it is almost always valid for two years. Nevertheless, if your economic position alters during that time and you can't meet the prescribed payments, the offer could be taken back and your account will become active again.
• OICs are complicated, and you will have a higher chance of your offer being accepted if you get professional help. To put together an OIC correctly, you need to understand tax law extremely well.
• A tax specialist can help to make sure your offer is sent correctly and has all the extra documentation needed. They can also haggle with the IRS on your behalf to try and get a better settlement.