The IRS can and does set up payment plans, which are an agreement with the IRS to pay the taxes you owe within an extended timeframe. Visit our complete IRS Payment Plan setup guide, part of our free and helpful public-access Tax Guide.
If you are stuck with your IRS payment plan, here are some suggestions on how you can fix your problem.
The two most popular options for an IRS Payment Plan are:
See our complete guide to find out whether an Offer in Compromise or a Not Collectible Status would be more desirable for your individual tax case.
An Offer In Compromise is a settlement for less than you actually owe!
An Offer in Compromise is seldom the kind of arrangement where you get “10% off” on your tax debt. You either get a substantial savings (pennies on the dollar) or none at all.
You do not need to keep up with your payment plan while it is pending.
The best option for people who cannot pay off their debts and do not have substantial assets.
Basically, a payment plan for $0/month, because your financials show an ability to pay of $0.
People with assets that are substantial but are broke month to month are good candidates for Currently Not Collectible.
Most people that can get Currently Not Collectible can also get an Offer In Compromise, which is better.
You can see our CNC Tax Program Review here, to find out more about the ins and outs of filing Currently Not Collectible.
Some things can extend the amount of time to collect, like when an Offer In Compromise is pending or a payment plan request is pending.
So if you do get stuck in Currently Not Collectible, you might pay nothing until the debt expires.
Call us at (888) 515-4829 or go to trp.tax/start
If we cannot help you, we’ll tell you and point you in the right direction.
Going it alone? Check out our free tax help guide by searching “trp tax help guide” on Google.
Need a question answered? Comment here or on our YouTube videos and a tax attorney will answer.
Understanding Base Erosion: The Challenge of Profit Shifting Base erosion refers to the phenomenon wherein multinational enterprises (MNEs) exploit cross-border… Read More
This article endeavors to provide an exhaustive exploration into the intricacies of foreign trusts, aiming to offer clarity for trustees,… Read More
Understanding the ins and outs of providing free meals and/or lodging to your employees can be a bit daunting, but… Read More
As state tax revenues taper off from their peak levels, there's a growing debate over the financial viability of the… Read More
Imagine a dynamic sales tax environment across the United States, where navigating sales tax regulations feels like solving a puzzle,… Read More
As we set sail into another year of navigating sales tax landscapes, there's a wave of anticipation for the exciting… Read More