Landmark Tax Group

Payment Plan Tax Relief in Garden Grove


What to Know About Installment Agreement Relief in Garden Grove

What is an IRS payment plan? A monthly payment plan is an agreement between the IRS and a taxpayer to pay down an existing tax debt in designated amounts, over a period of time. Depending on the circumstances of a taxpayer’s case, IRS installment agreements can last anywhere from three months to 72 months (6 years).

How do I get an IRS installment agreement?

Before the IRS can consider an installment agreement as a collection alternative for individual taxpayers, a taxpayer is required to be in compliance with filing and federal tax withholding (or estimated tax payments in the case of self-employed taxpayers). Business taxpayers must also be in compliance with filing and are required to be up-to-date with all federal tax deposits for the current payroll quarter. In all cases, the IRS will only accept a payment plan for back taxes if a taxpayer does not have the ability to immediately full pay the liability through income and assets.

What else do I need to know about paying my back taxes using a payment plan?

Due to the recent IRS Fresh Start program, more taxpayers may qualify for an IRS installment agreement. Depending on the dollar amount owed, some taxpayers may be eligible to establish a payment plan without being required to submit financial information to the IRS. Moreover, the IRS may allow for removal of a previously filed tax lien for certain taxpayers that agree to a direct debit installment agreement (DDIA) and meet other IRS criteria. Because penalties and interest continue to accrue during a payment plan, taxpayers should first consider full paying a tax debt whenever possible.

See: 11 Tips for Taxpayers Who Owe Money to the IRS

If you need help with setting up a payment plan in Garden Grove, contact us today at 1-714-382-6780 for a complimentary, private assessment with experienced Garden Grove CPAs, enrolled agents, and tax attorneys.

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