IRS payment plans are set up for those taxpayers who do not have the appropriate resources to meet their financial obligation with the IRS. IRS payment plans provide an avenue of least resistance for taxpayers to meet their tax obligations each month. The Tax Defender USA sets up a variety of programs based on certain conditions. Certain taxpayers may qualify for different IRS payment plans.
Most IRS payment plans provide the taxpayer with some wiggle room when it comes to paying taxes because of the fact that many of these agreements offer a lump sum payment if the full amount of the taxes are not paid in full within a specific amount of time. The IRS will issue a notice of default if the taxpayer fails to meet their agreement. If this happens, the IRS will then pursue collection of the outstanding amount of taxes.
A tax debt within the meaning of IRS payment agreement is any tax balance that remains unpaid after the taxpayer has filed all of his or her federal tax returns for that year. It does not include a tax balance that was paid in an Offer in Compromise (OIC) or in a Joint Tax Agreement. An OIC is not required by IRS payment agreement and is only available if the taxpayer can show that he or she will be unable to pay the debt in full by the end of the year. If the taxpayer fails to meet the conditions for an OIC, then the IRS will foreclose on the property used as security for the debt.
In most cases, it is better for the taxpayer to pay their debt in full and avoid the possibility of the property being repossessed. However, in order for an individual to achieve this, there are many options available. One option is to pay their debt in monthly installments through the IRS. This means that the taxpayer would make one monthly payment to the IRS and the agency would distribute that money to the Internal Revenue Service’s collection agents.
Another option for taxpayers who need to meet their debt obligations with short-term convenience is to file for an installment plan with the IRS. This option is often used for individuals who are unable to meet their obligation to the IRS in a short period of time. For example, someone may need to meet their tax obligation before the deadline for filing a federal tax return. In this case, using an installment plan can make it easier to fulfill the IRS’ short-term obligation.
These types of agreements are also beneficial for taxpayers who are involved in a business. Business owners can use IRS payment plans in order to facilitate short-term cash flow needs. It is even possible to get IRS approval to arrange for a temporary restraint in outstanding obligations, as well as for an extension of the terms of any financial disclosure agreements. In some cases, taxpayers may be able to arrange to pay their outstanding liability using an installment plan. It’s important to keep in mind, however, that financial disclosure agreements are typically recorded on your income tax return.