Tax Day is officially behind us – this means we can start talking about the almost post-apocalyptic world of payments & refunds. Before we jump in to this week’s subject, we want to remind all of our readers that we are a valuable resource for all things related to taxes. We specialize in working with small businesses and individuals with tax liabilities. Today, we’re talking about Installment Agreements with the IRS.
Not everyone has the funds laying around to just pay their taxes off. In fact, that’s a pretty general statement. I think a lot of us can relate to that – tax season is tough, and many of us can’t just throw the cash down on back taxes…at least, not without eating Ramen Noodles for a while afterwards!
It is truly surprising that a lot of people aren’t even aware of the fact that you can set up installment agreements with the IRS! If what you need is time, this is definitely the answer you’re looking for. Even most people who are aware that you can set up an installment agreement with the IRS don’t know that there are a few different ways to do it. We’re happy to share some of those ways with you today!
Online Payment Agreements
Since we’re in the 21st century, it’s pretty convenient that you can accomplish a lot of tax-related objectives online. In 2016, you can file your taxes online and pay them with one keystroke. When it comes to back taxes, there are also some online options out there!
Individuals who owe less than $50,000 in combined individual income tax after filing their returns can apply for an online payment agreement. Even if you’re not eligible for an online payment agreement, you can still pay your debt in installments. The major key here is being able to avoid defaulting on your payments. (**Important Note: All of your future refunds will be applied to your tax debt)
In-Business Trust Fund Express Installment Agreement
This is going to be an especially valuable piece of knowledge for all of you Small Business owners out there! If your business owes $25,000 or less (in payroll taxes, etc.) and you have employees after filing all necessary return documents, you may qualify for an In-Business Trust Fund Express installment agreement! Unlike other installment agreements, these do not typically require a financial verification process – meaning that if you really need it, you can save yourself the headache and just jump right in to making your payments.
Partial Payment Installment Option
The last type of installment option we want to discuss in this blog is a partial payment installment. In 2004, the American Jobs Creation Act paved the way for a lot of great legislation. One benefit was the implementation of the Partial Payment Installment option… a great option for people who have outstanding federal tax liabilities. This allows for those individuals to make low-level payments that will amount to a partial or full amount of their tax debt, depending on the situation.
Taxpayers who apply for the Partial Payment Installment Option must submit very accurate financial documentation which demonstrates need for it, and if the candidate is accepted, they are subject to financial review every two years.
It’s a lot to take in, isn’t it? Fortunately, we’re here to help if you have any questions. If you want to know more about how we can help you with Installment Agreements, click here. If you’re pretty confident that this is something you really want to know more information on – call 844-841-9857 or schedule your free consultation!