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The most common work out options and the most favorable one to the agency (IRS) will be the installment plan programs. Under these programs you can set up a payment plan to pay back what you owe the IRS. We will take a deeper look into the different types of payment plan options available to YOU the taxpayer. In the coming weeks, we will explain each type of workout option. This month we will focus on the installments plans or IA’s. Below are a few short tips you should know before making that call to the IRS.
1) Be prepared to go over your monthly income and expenses.
2) Not all expenses are allowed to be used as part of the mathematical equation the agents use to calculate what you can afford to pay each month.
3) The IRS gives themselves up to ten years to try to collect your tax debt. Know when your debt expires, these are commonly known as CSED (collection statue expiration date).
4) Did you know you can pull your own wage and income & account transcripts from IRS.gov? By setting up an online account you can pull your own transcripts. IRS keeps records for you going as far back to 2012. Reviewing the information on wage and income and account transcripts can be very handy!
5) Be patient, we know getting a hold of an agent is extremely tough these days. Thanks, Covid!
6) IF you have never applied for an installment plan with the IRS, you may qualify to apply online. This is called OPA (online payment agreement).
7) You can also apply via paper form by filling out one of the collections forms the IRS has available online for free!
There are many different types of installment plans: Standard Installment, Streamline Installment, PPIA (partial pay installment) and business installment plans. If you have any questions about the different types of plans and other workout options the IRS offers, feel free to reach out to me to discuss your options. Our next posting on August 12th will go into deeper explanations of the different types of IRS installment plans. Tell then! 😊
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