IRS Payment Plan
An IRS Payment Plan is an agreement between a taxpayer and the Internal Revenue Service (IRS) to pay off a tax debt in installments over time.The payment plan is also known as an installment agreement. The relevant tax code section for IRS payment plans is Section 6159 of the Internal Revenue Code, which outlines the procedures for installment agreements.According to the IRS, taxpayers who owe $50,000 or less in combined tax, penalties, and interest can apply for an installment agreement. Taxpayers who owe more than $50,000 may still qualify for an installment agreement, but they will need to provide additional financial information and may need to file Collection Information Statement.
If you owe back taxes to the Internal Revenue Service (IRS), you may be feeling overwhelmed and unsure of how to proceed. Fortunately, there are options available to you, including an IRS Payment Plan. In this article, we'll explore what an IRS Payment Plan is, how it works, and how the Carr Law Firm can help you navigate the process.
What is an IRS Payment Plan?
An IRS Payment Plan, also known as an Installment Agreement, is a payment plan that allows taxpayers to pay their tax debt over time, rather than in one lump sum. The IRS offers several different types of payment plans, including:
- Guaranteed Installment Agreement: If you owe $10,000 or less in taxes, penalties, and interest, you may qualify for a Guaranteed Installment Agreement. This type of agreement does not require the IRS to verify your financial information, making it easier to qualify.
- Streamlined Installment Agreement: If you owe between $10,000 and $50,000 in taxes, penalties, and interest, you may qualify for a Streamlined Installment Agreement. This type of agreement requires the IRS to verify your financial information, but the process is relatively simple and straightforward.
- Partial Payment Installment Agreement: If you owe more than $50,000 in taxes, penalties, and interest, you may qualify for a Partial Payment Installment Agreement. This type of agreement allows you to pay a portion of your tax debt over time, with the remaining balance being forgiven after a set period of time.
How does an IRS Payment Plan work?
To apply for an IRS Payment Plan, you'll need to fill out Form 9465, Installment Agreement Request. You'll need to provide information about your income, expenses, assets, and liabilities, as well as how much you owe in back taxes. Once you've submitted your application, the IRS will review your information and let you know if you qualify for a payment plan.
If your payment plan is approved, you'll need to make monthly payments to the IRS until your tax debt is paid in full. The amount of your monthly payment will depend on how much you owe and how long your payment plan is.
How can the Carr Law Firm help?
Navigating the IRS Payment Plan process can be complicated, but the Carr Law Firm is here to help. With over 25 years of legal experience and a Master's Degree in Taxation, Founding Attorney Nathan E. Carr has the knowledge and expertise to help you achieve a favorable outcome.
At the Carr Law Firm, we can help you:
- Determine which type of payment plan is best for your situation
- Complete and submit Form 9465, Installment Agreement Request
- Negotiate with the IRS on your behalf
- Review your tax returns to ensure accuracy and completeness
- Provide legal representation if you need to appeal an IRS decision
If you're struggling with back taxes and need help navigating the IRS Payment Plan process, contact the Carr Law Firm today.
Arizona Tax Law Representation
If you're facing tax issues in Arizona, it's important to work with an attorney who is familiar with the state's tax laws. At the Carr Law Firm, we have extensive experience representing clients in Arizona tax cases, including:
- Sales and use tax audits
- Property tax appeals
- Employment tax issues
- Income tax disputes
We understand the complexities of Arizona tax law and can help you achieve the best possible outcome in your case. If you need help with an Arizona tax issue, contact the Carr Law Firm today to schedule a consultation.
Conclusion
If you owe back taxes to the IRS, an IRS Payment Plan may be an option for you. The Carr Law Firm can help you navigate the payment plan process and achieve a favorable outcome. Contact us today to learn more about how we can