If you cannot afford to pay your income taxes in full, you may be able to negotiate a payment plan with the Internal Revenue Service (IRS). By entering into an installment agreement with the agency, you can avoid tax liens and other consequences of failing to pay your taxes. Given the challenges of negotiating with the IRS, it is wise to consult with an experienced tax lawyer.
At Regal Tax & Law Group, PC, we work with clients throughout California to negotiate installment agreements with the IRS. Our practice focuses on complex cases involving taxpayers who owe $50,000 or more to the IRS. Well-versed in the applicable tax laws, our experienced tax attorneys will help you design a workable repayment plan and minimize tax penalties.
Being involved in a tax dispute with the IRS puts you at an unfair disadvantage. We know how to level the playing field and will make sure your rights are protected. Contact our office today so we can start working on your IRS installment agreement.
What is an IRS Installment Plan Agreement?
Because the IRS recognizes that some taxpayers may not be able to pay their income taxes in full by the deadline (within 120 days of filing a tax return), the agency allows them to create installment plans. Requesting an installment agreement and dealing with the IRS can be complicated, so it helps to have an adept tax attorney in your corner.
While setting up an installment plan may help avoid tax liens, you will still be liable for interest and penalties, which are determined based on a formula devised by the IRS. Our legal team will work to minimize any penalties and help you avoid collateral consequences of not paying your taxes, such as levies, garnishments, and other enforcement actions.
Types of IRS Installment Agreements Available to California Taxpayers
There are a few types of payment plans, and choosing the right plan ultimately depends on how much you owe and how long you need to pay off the tax debt:
Guaranteed Installment Plan Agreements
The IRS offers guaranteed installment agreements to taxpayers who owe less than $10,000 and can pay off the debt within 3 years. Guaranteed plans require you to pay your tax liability, interest, and fees and can usually be negotiated without an attorney. To qualify, however, you must have filed a tax return, paid all prior taxes, and not had an installment agreement within the past 5 years.
Streamlined Installment Plan Agreements
If you owe up to $50,000 in taxes, fees, and interest, and can pay your tax liability in full within 72 months, you may be able to enter into a streamlined installment plan. This is an online application process with minimum disclosure requirements, but to qualify all tax filings must be current. The preferred payment method is direct debit or payroll deduction, but this is not mandatory. Using a direct payment method does offer advantages, however, such as reduced user fees and avoiding federal tax liens. In any event, it takes a skilled tax attorney to negotiate a streamlined installment agreement.
Non-Streamlined Installment Plan Agreements
In response to the Covid-19 pandemic, the IRS established non-streamlined installment plans in August 2020. A non-streamlined agreement allows taxpayers who owe between $50,000 and $250,000 in taxes, fees, and interest to provide limited financial disclosure if they can pay the tax debt before the collection statute of limitations expires, which is 10 years from the date of assessment.
Because the IRS is limited to that 10-year period to collect taxes, the agency may consider partial payment plans in some cases. Our experienced tax attorneys can help negotiate a non-streamlined installment agreement that best suits your needs and protects your interests.
Why Choose Us to Assist With Your IRS Installment Agreement?
Negotiating a workable installment plan with the IRS is challenging, and dealing with the agency can be intimidating. The best way to protect your rights, design a realistic payment plan, and reach an agreement with the IRS is to work with Regal Tax & Law Group, PC.
We will take the time to assess your tax liabilities and financial circumstances and explore all your tax relief options. Though we believe it is best to pay your taxes by the deadline if possible to avoid fees, interest, and penalties, we can help you work out a payment plan with the IRS that fits your needs. The main benefit of entering into an installment agreement is that it stops all collection activities by the agency, which can give you breathing room to get back on your feet.
Trust us to provide you with a secure environment in which you can make informed decisions about your future. We will handle all communications with the IRS and leverage our knowledge and skills to negotiate a well-conceived installment agreement.
Contact Our Experienced California IRS Installment Plan Agreement Attorneys
If you owe $50,000 or more in taxes, turn to Regal Tax & Law Group, PC. Above all, we will always work in your best interests and help you remain in good standing with the tax authorities. Contact our office today for a no-cost, no-obligation consultation.