Unable to Pay your Income Tax Balance in Full? Do you need more time to pay the IRS?
Would you benefit from being on a Payment Plan with the IRS?
If you are not able to pay your income tax balance in full or within 120 days (after filing your income tax return), you may qualify to enter into a monthly payment plan with the IRS called an Installment Agreement.
The IRS offers various options for making monthly payments:
- Direct debit from your bank account
- Payment through the Electronic Federal Tax Payment System (EFTPS)
- Payment by credit card via phone or internet
- Payment via check or money order
The main benefit of entering into an Installment Agreement with the IRS is that you are no longer in “Collections” which means the IRS will not pursue enforcement actions against you by trying to levy your assets, put liens on your property, or garnish your wages!
However, we advise if you are able to pay your taxes do it to avoid accruing interest and penalties.
If you are an individual and owe $50,000 or less in tax (including interest & penalties) you can apply for an installment agreement online without filing any financial statements (Form 433).
If you are a business and owe $25,000 or less in tax (including interest & penalties) you can apply for an installment agreement online without filing any financial statements with the IRS.
Our Tax Attorneys can assist you in obtaining an Installment Agreement.
Do you have a tax matter and need to speak with a local tax attorney? Please contact us to speak with a tax professional.