The Internal Revenue Service has several new features added to the interactive Online Payment Agreement application found on the IRS website. These features are designed to make it easier for taxpayers to make changes to existing installment agreements and apply for a new one. The system now permits individuals to revise their payment due dates and/or amounts on existing agreements, to revise existing extensions to regular installment agreements, and to revise existing regular installment agreements to a payroll deduction installment agreement or a direct debit installment agreement.

More than 75 percent of those eligible for an installment agreement can establish one using the online application, according to the IRS. Since launching in October 2006, more than 30,000 taxpayers have successfully used it to set up a payment agreement. Eligible taxpayers who owe $25,000 or less in combined tax, penalties and interest can self-qualify, apply and receive immediate notification of approval for installment agreements – including pre-assessed agreements on current tax years' liabilities. Paying taxes on time and in full avoids unnecessary penalties and interest. However, taxpayers who cannot pay in full may request a payment agreement. To be eligible, a taxpayer must first file all required tax returns and be current with estimated tax payments, if applicable.

A short-term extension can give a taxpayer up to 120 days to pay. No fee is charged, but the late-payment penalty plus interest, will apply. A monthly payment plan or installment agreement gives a taxpayer more time to pay. Though interest still applies, the late-payment penalty is cut in half for any month an installment agreement is in effect. This reduced rate of 0.25 percent (1/4 of 1 percent) per month is only available if the tax return was filed on time. Alternatively, taxpayers can apply for a payment agreement by filling out Form 9465, Installment Agreement Request. This form can be filed along with either an electronically-filed return or a paper return. If filing on paper, be sure to attach it to the front of the return.

Can't Pay Your Taxes? Set Up an Online Payment Plan. is a post from: IRS Tax Problem Solver Blog - IRS Help

Taxpayers who owe but can't pay in full have several options available to help them meet their tax obligations and save money by the April 15 filing deadline. First, taxpayers should file their return on time and pay as much as they can with their return. Second, a taxpayer should request a installment payment agreement for the balance. Interest and penalties can add up for taxpayers that don't file and pay on time. Taxpayers can limit these charges by simply filing on time and paying at least some of the balance owed. Interest and penalties will apply to any tax paid after the April 15 deadline, but are based on the balance owed, therefore paying some and owing less will reduce the interest and penalties associated with not paying in full. Additionally, just by filing on time (even if a balance is owed) a taxpayer avoids the much larger 5-percent-per-month late-filing penalty.

There are e-pay options that offer taxpayers the easy and fast ways to make a full or partial payment with their return. Taxpayers can make payments either online or by phone using electronic funds withdrawal or a credit card. Of course taxpayers can still send the IRS a check made out to "United States Treasury." If a taxpayers needs more time to pay and they owe $25,000 or less, a monthly payment plan can be set up online at www.irs.gov. Taxpayers are charged a one-time fee for setting up a monthly payment plan, but as long as the return was filed on time, the penalty for late payment is cut in half as long as the payments are made on time each month. A taxpayer can also request a short-term extension to pay which will give them an additional 120 days to pay in full, there is no fee for this extension but the late payment penalty and interest will still be added to the balance.

Taxpayers that owe more than $25,000 can still get a monthly payment plan but they must do so in writing by filling out an Installment Agreement Request on Form 9465. This form can be filed along with an electronically filed return or a paper return. If it is filed with a paper return it should be attached to the front of the return. Some taxpayers can wait until after April 15 to file and pay. Those eligible get the extra time penalty-free and interest-free without having to ask for it. Eligible taxpayers include: Members of the military serving in Iraq, Afghanistan or other combat-zone localities. Normally, the filing and payment deadline is postponed until 180 days after the service member leaves the combat zone. That's a huge penalty and interest free extension! Taxpayers in federally declared disaster areas also receive interest and penalty free extensions. So this year if you can't pay your taxes in full by April 15th don't panic, make sure you at least file on time, and check your options for a monthly payment plan. If all else fails seek professional representation to help you resolve your unpaid liability.

Payment Options for Taxpayers Who Can’t Pay in Full is a post from: IRS Tax Problem Solver Blog - IRS Help

I prepared this short video on IRS Payment Plans also known as IRS Installment Agreements. I explain in detail how do you qualify and how do you get the IRS to agree to one. It's sometimes very easy and at times excruciatingly difficult. If you want to know more about the different solutions available to people with IRS Problems, you might want to visit our IRS Solutions page or call our office tollfree at (888) 438-6474. We represent clients all across the U.S. and the world.

IRS Payment Plans – Do you qualify? and How do you get one? is a post from: IRS Tax Problem Solver Blog - IRS Help

Obtaining an IRS installment agreement may be a solution to your IRS Problems.  If you are unable to pay your taxes in full and want to avoid more IRS Problems, an installment agreement may be your best solution.

An installment agreement allows you to make monthly payments and generally gives you up to 60 months to pay your taxes.

Installment Plan Criteria

•    You owe less than $10,000
•    You have filed and paid your taxes in the past 5 years by the due date and have not entered into an installment agreement to pay these taxes
•    You provide documentation to prove you cannot pay your taxes in full on time
•    You agree to pay the full amount owed in 3 years and agree to comply with the tax laws during the plan

What Do I Need to Do Next?

Form 9465(Installment Agreement Request) should be filed along with your tax return.  The IRS may also ask you to fill out Form 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals) to help determine if you are financially unable to pay your taxes.  This form will ask for your income, expenses, assets, and liabilities.

Approval of Installment Agreement

After the IRS approves your installment agreement, you will receive a letter from the IRS informing you of how to pay the fee for the agreement and when to make your first payment.  To comply with the agreement you will need to file your future tax returns on time and pay the taxes due by the due date.  If you are due a refund, it will be used to reduce your tax debt.

You will receive a letter after the IRS receives each monthly payment stating the amount you still owe.  It will also show the amount and due date of your next payment.  If you have the amount drawn directly from your account, you will not receive this notification.  It is also possible to make your payments with a credit card.

If You Default on an Installment Agreement

If you fail to make payments or fail to pay the amount due on future tax returns, you will be default on your agreement.  At that time, the IRS may take enforcement actions.  This could be in the form of a Federal tax lien or IRS levy.

To avoid further IRS Problems, contact our office for assistance with the installment agreement process.  Our knowledgeable staff can help you with any IRS Problems you may be having.  Contact us today.

All about IRS Installment Agreements is a post from: IRS Tax Problem Solver Blog - IRS Help

If you need IRS help to determine if an IRS installment payment plan is the best choice for your IRS problem, contact our office and our friendly and professional staff will be happy to assist you in making that decision.

An installment payment plan is used extensively as an option for repaying IRS debt.  As long as you owe $25,000 or less, you are likely to be able to utilize a 60-month repayment plan.  If, however, you owe more than $25,000 to the IRS, typically you will need to negotiate for an installment plan and what they payment will need to be to satisfy the IRS.

If you have an IRS problem and you owe a substantial amount of money, utilizing an installment plan option can be convenient and affordable.  In some circumstances, an installment plan may be the only option available to you.  However, you need to realize there are also some drawbacks to an installment plan.  Drawbacks include the fact that you will still continue to accrue interest and penalties on the amount you owe, even while you are making payments.  When you combine the interest rate with the penalties assessed, the accrual rate can be 8 to 10 percent per year.  It is possible to make payments for several years and still owe more money than the original amount.  You will need IRS help to find the best solution and repayment method that is going to work for you.  Call our office to learn more and get assistance for your IRS problems.

You may not be eligible for an installment plan.  To be eligible, the IRS documentation must show that you have filed all past due tax returns.  If you are self-employed, the IRS must show your status as current on your quarterly estimated tax payments.  Also, if you have employees, you must be up-to-date on your payroll tax deposits and Form 941 submittals according to IRS records.

The best option would be, of course, to pay any amount you owe in full as quickly as possible.  You will avoid interest charges and minimize penalties by paying the total amount you owe in full.  However, that is not always possible and, therefore, an installment plan can help you through your current situation.  Contact our professional staff for IRS help with your decision-making process before entering into an installment agreement.  It is possible that another type of loan or even using a credit card, if it has a lower interest rate attached to it, can save you money instead of using the IRS installment agreement.  To bring the most benefit to you, you need to pay as much of the amount owed as possible before entering into an installment agreement with the IRS.

If you need IRS Help, contact our office today to determine the most effective way to solve your IRS problems.

Is an IRS Installment Payment Plan right for you? is a post from: IRS Tax Problem Solver Blog - IRS Help

Probably the most common question I get from people who need IRS help is can I have a payment plan? They say I'm not trying to get out of paying, I just can't pay all of it off at once. The answer is usually yes. There are several different types of Installment Agreement as the IRS calls a payment plan. Watch the video below and learn the different types of Installment Agreement and whether you qualify for one. People who are suffering from IRS Problems need to be careful about deciding whether an Installment Agreement is right for them. Only a qualified tax attorney can give you the best advice.

Can I Get an IRS Installment Agreement? Why won't they let me pay over time? is a post from: IRS Tax Problem Solver Blog - IRS Help