The IRS offers payment plan agreements for individuals and businesses to pay the taxes they owe within an extended period of time. If you believe that you will be able to pay your taxes in full within an extended time frame, you may qualify for an IRS payment plan. Our Los Angeles tax attorneys explain how to step up a payment plan with the IRS.
Dealing with the IRS isn’t always easy. If you need help setting up your payment plan, contact our Rancho Cucamonga tax lawyers today at (909) 766-9996!
How to Set Up a Payment Plan with the IRS
Your unique tax situation will determine if you are eligible for a payment plan agreement with the IRS. Payment options include full payment, a short-term payment plan (paying in 120 days or less), or a long-term payment plan (installment agreement) (paying in more than 120 days).
If you are an individual, you may qualify for:
- Long-term payment plan: You may qualify for an installment agreement if you owe $50,000 or less in combined tax, penalties, and interest, and filed all required returns.
- Short-term payment plan: You may qualify for a short-term payment plan if you owe less than $100,000 in combined tax, penalties, and interest.
If you are a business, you may qualify for:
- Long-term payment plan: You may qualify for an installment agreement if you owe $25,000 or less in combined tax, penalties, and interest, and filed all required returns.
If you fit the requirements above, you may be eligible to apply for a payment plan on the IRS website. You will need to confirm your identity and file a form to demonstrate that you qualify. You should have an experienced attorney guide you through the process to increase your chances of obtaining a favorable outcome.