IRS Debt Payment Plan
At New Freedom Tax Relief, near Phoenix, AZ, we understand how challenging it is to be in debt with the IRS. Watching the numbers climb higher and the hopeless feeling that you’ll never be able to pay it off can fill you with dread. But there is hope. Our team of tax specialists works closely with you and the IRS to find mutually beneficial solutions. We can help you reduce the amount owed and find a reasonable payment plan that works for you.
The IRS debt forgiveness plans are designed to help those who can not afford to pay off the full amount of their taxes due. As with most assistance programs, in order to qualify for a payment plan, you must be up-to-date with all your current tax filings and not in the middle of any bankruptcy proceedings. If you owe thousands in back taxes and aren’t sure how you’ll get them paid off, call the tax debt experts at New Freedom Tax Relief today!
Payment Plan For Taxes
When it comes to paying off your tax debt, you have options. But the first thing you should do is meet with one of our specialists and see if you qualify for an offer in compromise (OIC). Qualifying for an OIC allows you to significantly reduce the amount you owe and makes it easier for you to pay off your debt. We have years of experience helping our clients take thousands off of their total debt.
The most common payment plan for tax debt is an installment agreement (IA), also known as a direct debit installment agreement, which allows you to pay down your debt in monthly payments. There are two options when it comes to payments; short-term and long-term.
Short-Term Payment Plans are available if you owe $100,000 or less and can pay off the balance in 120 days or less.
Long-Term Payment Plans are available if you owe $50,000 or less and can pay off the balance in 120 days or more.
While installment agreements can be incredibly helpful for many people, you must also take into account that you will have to pay for any late fees, penalties, and interest rates that accrue over the time it takes you to pay off your debt. If you are a low-income taxpayer, you may be able to have some or all of the IA setup fees waived.
IRS Payment Plan Coronavirus
The Coronavirus pandemic has caused newfound hardships for millions of Americans, so it should be no surprise that it has also affected people’s abilities to pay back their taxes. As many people have lost their jobs or experienced a significant reduction in their income, the IRS is continuously working to provide relief to those in debt. Some of the initiatives they are offering include:
- A focus of First-Time Penalty Abatement (FTA) waivers which will help taxpayers who failed to file, pay, or deposit penalties for the first time.
- If you have received notice of tax debt up to $250,000, the IRS will offer an installment agreement without a lien filed.
- They are extending short-term payment plans from 120 days to 180 days.
- Offering more flexibility to get an installment agreement without financial verification.
- Relief options for taxpayers who are having difficulties meeting the terms of previously accepted offers.
If the Coronavirus has affected your ability to pay off your tax debt, call New Freedom Tax Relief today and meet with one of our experienced tax specialists.
Tax Relief Services
At New Freedom Tax Relief, our goal is to help the residents of Phoenix, AZ, and the surrounding areas with their tax returns, debt, and other financial and tax services. We will work with you and the IRS to find the type of agreement that works best. Our team has decades of experience and the skills to ensure you get the best possible income tax returns and owe the lowest possible amount on your debt. Call us today to schedule a free, no-obligation consultation and get started on the path to financial freedom!