Monthly Payment Plan

Do you owe back taxes to the IRS? Are you having trouble getting enough money together to pay your back taxes?  It might be possible to set up a payment plan with the IRS.  In general there are three options.

1.  An Installment agreement for a taxpayer who owes less than $50,000 including interest and penalties.  You will set up a monthly payment schedule to pay your outstanding tax debt in full.  Penalties and interest will still accrue, but at a lower rate than if you did not have a payment plan in place.

2.  For individuals who owe more than $50,000 including interest and penalties, you may qualify for a monthly payment plan, but will be required to submit a financial statement.  We can assist you in preparing this statement and providing documents to substantiate your request.

3.  If your business owes $25,000 or less in back taxes, you may request an “In-Business Trust Fund Express” installment agreement (IBTF-Express IA).  An IBTF-Express IA payment plan usually doesn’t require a financial statement, although the business must currently have employees.  An IBTF-Express IA grants you a 24-month period to fully pay the outstanding tax debt. If the amount owed is greater than $10,000 but below $25,000, your business must set up a Direct Debit installment agreement (DDIA). 

We can discuss whether any of these options might be available to you.  Call or email us today for more information.

Comments are closed.