Make IRS Payment Arrangements with NYC Accountants 212 Tax
If you owe the IRS back income or payroll taxes, you may be able to repay the debt over time through an income tax payment plan. Not every taxpayer or employer is eligible to use an IRS payment agreement, however. If you need to set up a tax payment plan with the IRS but you are not sure if you qualify, the NYC accountants at 212 Tax can help.
How the Federal Income Tax Payment Plan Works
The federal tax payment plan is a popular option for individuals and businesses that are unable to pay the full amount of taxes, penalties and interest owed. Most taxpayers who owe less than $25,000 can set up a streamlined installment plan without professional help, but setting up a repayment arrangement over this amount – especially if the total exceeds $50,000 – is more difficult.
In some cases, the IRS will approve a payment plan for balances under $100,000. Businesses must owe less than $25,000 in payroll taxes. Both individuals and businesses must have filed all required tax returns to get approval. If you owe the IRS more than $25,000, and especially if you owe the IRS more than $50,000, working with the tax accountants at 212 Tax.
If you receive permission to pay your tax debt over time with IRS installment payments, you must abide by certain rules. The IRS will apply any future tax refund to your outstanding debt until it is paid in full. You must make all installment payments in full or on time, even if the IRS applies a refund to your outstanding balance. You must also agree to file and pay new returns and taxes on time.
How to Set Up an IRS Payment Plan
The tax accountants at 212 Tax can contact the IRS and set up a federal taxes payment plan that meets your needs. We will review your taxes and finances, and negotiate with the IRS on your behalf. You will accrue further interest charges during the period you are paying back your taxes, even if the federal government accepts your request for an IRS payment plan. You should plan to repay your tax debt in full to the IRS within 5 years. If you do not meet or cannot accept the terms of the IRS payment plan, the NYC tax accountants at 212 Tax may still be able to help.
The tax accountants at 212 Tax provide personalized tax services to individuals and businesses in the New York City area. We will review your tax documents, assure your compliance and aggressively represent your rights. Do not attempt to negotiate with the IRS on your own.
We can recommend the right course of action, which may include signing an installment plan agreement or negotiating a reduced balance through the offer in compromise program. In many cases, our clients never deal with the IRS directly.
If you are a suitable candidate for a payment arrangement, 212 Tax will complete and file the required paperwork. We also provide:
- Comprehensive income tax preparation and filing services, including amending prior year returns
- Tax audit preparation and defense services
- Complete business services, including CFO services, payroll services and accounting services
- The personal attention your unique financial circumstances deserve
If you owe back taxes to the IRS and would like to discuss a payment arrangement, 212 Tax can help. Learn more about 212 Tax, or call us to schedule an immediate consultation.