If you owe more than $50,000, or you can’t reasonably pay the outstanding balance owed in less than six years, it’s important to come up with a payment plan that the IRS will approve. The team of experts here at US Tax Relief can help you devise a solid IRS installment payment plan you’ll be able to realistically live with.
Your request will begin with a Collection Information statement found on Form 433-A. An IRS collector will analyze your information to determine what amount you can pay per instalment. These payment amounts are done at the discretion of the Internal Revenue Service.
When proposing a payment plan, offer to pay the amount of your income minus your necessary living expenses. This will be the cash you have left over after your life necessity costs. It’s unwise to propose a payment plan you can’t afford just to better your chances of approval. Once approved you won’t be able to renegotiate so make sure it’s a payment plan you can feasibly handle on your current wages.
When you propose the agreement, make the first payment concurrently. Continue to make these monthly payments by using payment slips and bar-coded envelopes provided in any notice you may have received, even if the IRS hasn’t yet approved your IRS tax payment plan. Collectors are more willing to work with taxpayers that make voluntary payments. You can make payments online, over the phone, through check or money order, and with a credit card, but it’s important to always pay without defaulting.
After your Installment agreement proposal has been approved, you can pay through two other specific options