What is an IRS Payment Plan?

An IRS Payment plan is a tax resolution option that allows taxpayers to pay off their tax debt in full through an installment agreement every month. The total amount of your installment payment is determined by the amount you owe and the specified time available to the IRS to collect the tax debt. It can be a good alternative option for those who don’t qualify for an Offer in Compromise. If you cannot afford the payment amount to pay off the tax debt in full, the IRS allows a partial payment installment agreement (“PPIA”) which will be determined by your ability to pay based upon IRS financial standards.

To properly prepare and set up an IRS payment plan, you need to find the best IRS tax attorney to thoroughly evaluate your federal tax debt and determine the least monthly payment amount that the IRS will accept from you. Delia Law is a top trusted Southern California tax law firm that specializes in IRS tax debt problems. If you’re looking for reliable help for setting up an IRS installment payment plan to pay your tax debt, consult our experienced attorneys today.

What You Should Know

If you owe the IRS $50,000 or less, you may now qualify for a California tax payment plan. As part of the IRS’s Fresh Start Program, you have an opportunity to pay off your tax debt for a longer period now – from 60 months to 72 months. The cutoff is also higher now – from $25,000 to $50,000.

To qualify for a partial payment installment agreement, you must be up-to-date on the current year’s tax returns.

While an installment plan may be your best option, there are certain drawbacks. One of them is the fact that penalties and interest continue to accrue so long as you have unpaid taxes. When your tax debt is combined with the penalties charged by the IRS, the interest rate can be as high as 8% or even 10% per year. Also, if you don’t have any cash left after living expenses, you can’t negotiate a payment plan with the IRS. At this point, our professional Delia Law attorneys can help you submit an offer in compromise.

We Can Help You Negotiate an IRS Installment Payment Plan

At Delia Law, we know that rising tax debt can create a lot of financial problems. We deal directly with potential clients and are always attentive to the different challenges they are facing. Our approach is educational and conversational, so you can easily understand what tax relief options you have and how to get out of tax debt. We help you:

  • Fill in the information required in your Collection Information Statement
  • Propose a payment plan you can easily live with
  • Propose an amount you can affordably pay each month
  • Understand the steps you need to take to ensure you’re meeting requirements
  • Decide on the best option for making payments once your payment plan is approved

Talk to Us Now

If you’re wondering whether you can qualify for a California tax payment plan, don’t hesitate to talk to our knowledgeable and compassionate tax relief attorneys at Delia Law. It’s important that your IRS installment payment plan is submitted accurately by an experienced tax attorney or the result could easily mean your payment plan being rejected by the IRS.

Contact Delia Law for a no-cost tax attorney consultation. You can also call us directly at our San Diego Office at (619) 639-3336 or at our Los Angeles office at (310) 494-0100.