Can’t pay your taxes in full? Don’t risk rejection due to errors—let us secure your IRS monthly installment plan. We’ll handle the paperwork, ensure you qualify, and set up your payments. Get in touch with Focus CPA to make your tax management stress-free and get your installment plan approved fast!
The IRS offers four types of payment plans to help you manage your tax debt. Let’s break down each one in simple terms.
Guaranteed Installment Agreement
If you owe $10,000 or less, this plan is for you. With a Guaranteed Installment Agreement, you agree to pay off your debt, including any penalties and interest, within three years. The good news is that the IRS won’t place a tax lien against you. To qualify, you must owe less than $10,000, not have had an installment agreement in the previous year, and commit to regular monthly payments.
Streamlined Installment Agreement
If your debt is up to $50,000 (or $25,000 for businesses), you can opt for a Streamlined Installment Agreement. This plan allows you to pay off your debt in up to 72 months (or 36 months for businesses). Payments must be made through direct debit or payroll deduction. This agreement helps you avoid a tax lien and makes managing larger debts more straightforward.
Partial Payment Installment Agreement (PPIA)
If you can’t get an Offer in Compromise approved, consider a Partial Payment Installment Agreement. This plan lets you make smaller monthly payments over time. To apply, you’ll fill out a financial statement for the IRS to review. If approved, you’ll enter an agreement that includes a financial review every two years to adjust your payment amount as needed.
Non-Streamlined Installment Agreement
For those who owe more than $50,000, a Non-Streamlined Installment Agreement is available. This plan requires you to fill out detailed forms and provide extensive financial information. The IRS reviews this information to create a customized payment plan based on your financial situation. Getting help from a tax attorney can make this process easier.
These installment agreements offer various ways to manage your IRS debt. Choose the one that best fits your financial situation and meets the eligibility requirements.
- Negotiate with the IRS on your behalf
- Set up a manageable payment plan
- Reduce penalties and interest where possible
- Ensure your agreement is properly filed and approved
Many taxpayers are surprised to learn that interest and penalties continue to accrue even when you’re on an IRS payment plan. Setting up an installment plan with the IRS does not halt these additional charges. The IRS will keep charging interest and penalties until your tax debt is completely paid off.
The good news is that the failure-to-pay penalty is reduced to 0.25% per month when you’re on a payment plan, but you’ll still incur some additional costs over time.
Understanding these costs can help you manage your finances more effectively. If you're concerned about growing interest and penalties, consider seeking assistance from Focus CPA to set up an IRS payment plan.
Additionally, if you want to make your accounting hassle-free with Focus CPA, get top-notch accounting services, tailored accounting services for small businesses, and expert QuickBooks accounting services. Reach out to us today and experience the ease of professional accounting!
For over 30 years, we’ve been providing top-notch tax support, helping individuals and businesses manage their tax obligations efficiently.
Here’s how we can assist you with IRS installment agreements:
Flexible Payment Plans and Asset Protection
We help you choose the right IRS payment plan, whether short-term or long-term, to suit your financial situation. This avoids the stress of immediate full payment and manages your finances better. Plus, it protects you from IRS actions like wage garnishments, bank levies, and property liens, ensuring peace of mind.
Maintain Control of Your Finances
We help you make an installment agreement plan that can help prevent the IRS from seizing funds from your bank account. This gives you more control over your finances and helps avoid unexpected disruptions.
Reduce Penalties and Interest
We assist in structuring a payment plan that helps manage and potentially reduce additional charges over time. Our expertise ensures that you save money by reducing the failure-to-pay penalty from 0.5% per month to 0.25%.
Protect Your Credit
Entering into an installment agreement with our help can prevent new tax liens, protecting your credit report and score. This ensures that your financial reputation remains intact while you pay off your tax debt.
Easy and Predictable Payments
We help spread out your tax payments over time, making them more manageable. Consistent, predictable monthly payments allow you to budget more effectively, making the process stress-free.
Negotiate Favorable Terms
With our professional assistance, we can negotiate more favorable terms for you, such as lower monthly payments or extended payment periods. This ensures that your payment plan is tailored to your financial needs and capabilities. If you think we are the right fit for you, get in touch with Focus CPA Firm. Moreover, if you need help with incorporation services or family office services, we have experienced professionals ready to assist you. Contact us today to find the best solutions for your financial health.
We believe in making IRS installment plans hassle-free. Here’s how we work with you to achieve the peace of mind you deserve.
Step 01
We'll Assess Your Situation
We begin by understanding your financial situation. We verify if you owe $50,000 or less for long-term plans or less than $100,000 for short-term plans. We ensure all your required tax returns are filed and help you decide between a short-term or long-term installment agreement.
Step 02
We'll Assist with the Application
Next, we will manage the application process. This includes using the IRS Online Payment Agreement tool or filling out Form 9465 for mail or phone applications. We ensure accurate financial information is provided, including bank account details for direct debit payments.
Step 03
We'll Manage Setup Fees and Start Payments
We help you understand and pay the setup fee, which varies based on your payment method and income status. Once your plan is approved, we assist you in starting your payments using payroll deduction, direct debit, check or money order, EFTPS, or credit/debit card.
Step 04
We'll Monitor and Adjust Your Plan
We keep an eye on your payment plan by regularly checking your online account to view your payment history and remaining balance. If you need to make any changes to your payment amount, due date, or bank information, we can handle it using the Online Payment Agreement tool.
Step 05
We'll Ensure Compliance
To avoid defaulting on your plan, we help you file all future tax returns on time and pay any additional taxes owed. If you receive a notice of default or need to adjust your plan due to financial changes, we will contact the IRS on your behalf to resolve the issue.
Managing IRS installment agreements can be overwhelming. You want to stay compliant and avoid penalties, but it can be difficult to get through the process alone. At Focus CPA Firm, we’re here to help.
We understand the importance of having a clear and manageable payment plan. Our expert team provides solutions to reduce your financial anxiety and keep you on track with your payments.
Let us help you take control of your tax obligations and secure your financial future.
Frequently Asked Questions
A payment plan is an agreement with the IRS that allows you to pay your taxes over an extended period. If you believe you can pay your taxes in full within this extended timeframe, a payment plan may be a good option for you.
When you request a payment plan, the IRS generally stops levying your assets while your installment agreement is pending. This suspension remains in effect until the IRS reviews your request and establishes the agreement, or until your request is withdrawn or rejected. If you need assistance, Focus CPA can guide you through the process.
If the IRS approves your installment agreement payments IRS, setup fees are required to cover the cost of providing the plan. For individuals setting up a plan online, balances over $25,000 must be paid by Direct Debit. For businesses, balances over $10,000 must be paid by Direct Debit. Additional processing fees may apply for debit/credit card payments.
The Office of Management and Budget requires federal agencies to charge user fees for services like the Installment Agreement program. These fees help cover the cost of processing IRS installment plans. Focus CPA can help you understand and manage these fees. Get in touch.
Review and submit Form 13844, Application for Reduced User Fee for IRS Installment Payment Agreements, to the IRS within 30 days of receiving your installment agreement acceptance letter to request reconsideration of your low-income status. Focus CPA can assist you in completing and submitting this form.
Currently Not Collectible (CNC) status is when the IRS temporarily pauses collection efforts due to your inability to pay. You must provide financial information proving that paying your debt would cause significant hardship. Focus CPA will help you gather the necessary documentation and apply for CNC status.
The Online Payment Agreement tool allows you to change your monthly payment amount, and due date, convert to a direct debit agreement, update your bank account information, and reinstate your plan after default. Focus CPA can assist you with making these changes effectively.
Log into the Online Payment Agreement tool to revise your plan type, payment date, and amount. If your new payment amount does not meet the requirements, you will be prompted to adjust it. You can also update your bank information for direct debit agreements. For expert assistance, reach out to Focus CPA.
To avoid default, make timely payments, file all required tax returns, and keep your contact information updated with the IRS. Continue making payments even if your refund is applied to your balance. If you receive a notice of intent to terminate your IRS installment payment, contact Focus CPA immediately.