On: August 26, 2022

IRS Experienced Tax Experts on Payment Plans Pasadena

It is not an uncommon occurrence for a taxpayer to be unable to pay an outstanding Federal tax liability.

It could be because the Federal tax liability was unanticipated.  It could be because the taxpayer did not properly save money.  It could be because the taxpayer suffered an adverse financial event.  Whatever the reason, taxpayers may not have the available funds to pay a Federal tax liability.

One approach to take when you are unable to pay an outstanding Federal tax liability is to request a payment plan with the IRS.

If you are in Pasadena and want a payment plan with the IRS, you need to obtain representation from an IRS experienced tax expert in Pasadena who has significant knowledge concerning IRS payment plans.

IRS Payment Plans – General

An IRS payment plan is an agreement with the IRS to pay the Federal taxes you owe within an extended timeframe.  You should seek an IRS payment plan if you believe you will be able to pay your Federal taxes in full within this extended time frame.

There are two types of IRS payment plans – short-term and long-term.

Short-Term IRS Payment Plans – The Process

Under a short-term IRS payment plan, you will agree to pay the outstanding liability owed in 180 days or less.

Only individual taxpayers can apply for a short-term IRS payment plan online.  Individuals owing less than $100,000 in combined tax, penalty, and interest liability may qualify to apply online for a short-term IRS payment plan.

After applying for a short-term IRS payment plan, your payment options include:

• Payment directly from a checking or savings account (known as “Direct Pay”). Only individuals can use this payment option;
• Payment electronically online or by phone using the Electronic Federal Tax Payment System (“EFTPS”); and
• Payment by check, money order, or debit/credit card (fees apply when paying by card).

There is no setup fee in connection with a short-term IRS payment plan.  However, you can have to pay accrued penalties and interest until the balance is paid in full.

Long-Term IRS Payment Plans – The Process

Under a long-term IRS payment plan, you will agree to pay the outstanding liability in monthly installment payments.  Since a long-term IRS payment plan is based on installment payments, it is often referred to as an IRS installment agreement.

A long-term IRS payment plan can be analogized to a real estate mortgage.  The principal indebtedness on most real estate mortgages is too large to be paid in full in one payment; thus, most mortgages are paid in monthly installment payments.  A long-term IRS payment plan is based on a similar concept.

Both individual and business taxpayers can apply for a long-term IRS payment plan.  Individuals owing $50,000 or less in combined tax, penalty, and interest liability who file all required tax returns may qualify to apply online for a long-term IRS payment plan.  Businesses owing $25,000 or less in combined tax, penalty, and interest liability that file all required tax returns may qualify to apply online for a long-term IRS payment plan.

Form 9465, Installment Agreement Request, can be used to apply for a long-term IRS payment plan if you are an individual:

• Who owes income tax on Form 1040 or 1040-SR;
• Who is or may be responsible for a Trust Fund Recovery Penalty;
• Who owes employment taxes related to a sole proprietor business that is no longer in operation; or
• Who owes an individual shared responsibility payment under the Affordable Care Act.

However, if an individual taxpayer has a liability that is not more than $50,000 (including any amounts owed from prior years), the individual can request a long-term IRS payment plan online (at IRS.gov/OPA), instead of filing Form 9465.

Your payment options under a long-term IRS payment plan include:

• Payment through “Direct Debit” (automatic monthly payments from your checking account). This option is known as a “Direct Debit Installment Agreement”;
• Direct Pay. Only individuals can use this payment option;
• EFTPS; and
• Payment by check, money order, or debit/credit card (fees apply when paying by card).

Individual taxpayers with outstanding balances over $25,000, and business taxpayers with outstanding balances over $10,000, must use a Direct Debit Installment Agreement.

If you use a Direct Debit Installment Agreement, there is a $31 setup fee if you apply online or a $107 setup fee if you apply by phone, by mail, or in person.  These setup fees can be waived for certain low-income taxpayers.

If you use Direct Pay or EFTPS, or pay by check, money order, or debit/credit card, there is a $130 setup fee if you apply online or a $225 setup fee if you apply by phone, by mail, or in person.  For certain low-income taxpayers, the setup fee can be reduced to $43, which may be reimbursed if certain conditions are met.

In addition, you can have to pay accrued penalties and interest until the balance is paid in full.

How to Obtain the Most Favorable IRS Payment Plan – Hire an IRS Experienced Tax Expert

If you are considering an IRS payment plan, your first step should be to hire an IRS experienced tax expert who is knowledgeable about IRS payment plans.  The IRS experienced tax expert who you hire can help you with each of the following matters:

• The IRS experienced tax expert can determine if you should be requesting an IRS payment plan or if some other approach (such as, for example, an offer in compromise) to your outstanding tax liability should be pursued;
• The IRS experienced tax expert can prepare and file any outstanding tax returns for you (as being current on filing all tax returns can be a factor in having the IRS approve your IRS payment plan);
• The IRS experienced tax expert can assess whether you should request a short-term IRS payment plan or a long-term IRS payment plan;
• The IRS experienced tax expert can evaluate how you should best submit information to the IRS in connection with your IRS payment plan, including whether you should file for a long-term IRS payment plan using Form 9465 or applying online; and
• The IRS experienced tax expert can negotiate with the IRS to try to obtain the most favorable terms for you under the IRS payment plan.

It is important to remember that IRS payment plans, and the terms of IRS payment plans, generally are not automatically accepted by the IRS.  You need a skilled IRS experienced tax expert, who understands how the IRS handles IRS payment plan requests, to help you obtain the most favorable IRS payment plan.

Leading Tax Group – The Best IRS Experienced Tax Experts on Payment Plans in Pasadena

If you are in Pasadena and want to obtain the most favorable IRS payment plan, you need representation by the IRS experienced tax experts from Leading Tax Group (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!).

Leading Tax Group has years of experience in assisting its clients with their IRS payment plans, as part of its expansive knowledge concerning IRS tax collection issues.  Leading Tax Group has helped its clients determine if they should be requesting an IRS payment plan, prepare and file any outstanding tax returns for them, assess whether they should request a short-term IRS payment plan or a long-term IRS payment plan, evaluate how they should best submit information to the IRS in connection with their IRS payment plan, and negotiate with the IRS to try to obtain the most favorable terms for them under their IRS payment plan.

With this significant experience and knowledge, Leading Tax Group is the best IRS experienced tax experts (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!) in Pasadena to help you with your request for an IRS payment plan or any other IRS tax collection issue.

Leading Tax Group has a conveniently accessible office in Pasadena at 225 S Lake Avenue, 3rd Floor.

If you are seeking an IRS payment plan to resolve your outstanding tax liability, you need the aggressive IRS experienced tax experts from Leading Tax Group (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!).

For the best IRS experienced tax experts (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!) in Pasadena, contact Leading Tax Group now at (800) 900-4250 and schedule your free consultation today!