Can I Pay My Tax Debt in Installments?
Jan. 31, 2023
Many taxpayers in the United States usually fall behind on their tax filings due to errors in tax calculations, insufficient funds, late filing, failure to file, financial issues, or under-withholding. Unfortunately, failure to file your back taxes may result in IRS-imposed interests and penalties or other criminal charges. An experienced Nevada tax attorney can enlighten you about your available options to settle your past-due taxes.
Attorney Scott N. Tisevich is committed to offering knowledgeable guidance and advocacy to clients in all tax-related matters. Scott is available to discuss your unique circumstances, explore your possible legal options to settle your tax debts, and determine whether you can pay them off in installments. His firm is proud to serve clients across Reno, Las Vegas, Carson City, Lyon County, and Churchill County, Nevada.
Understanding Tax Debt
Tax debt can be described as money owed to the IRS for failure to pay or file your taxes. Generally, you will create a tax debt when you fail to fully pay the tax balance indicated on your federal income tax return prior to the due date. However, a tax debt can result in potential fines, penalties, or ineligibility for government assistance. Thankfully, there are various ways to settle your tax debts when you owe the IRS more than you can pay.
Tax Debt Payment Plans
A tax debt payment plan is among the available options to achieve tax compromise or relief when overburdened with past-due taxes. It requires requesting additional time from the tax authorities through a short-term or long-term payment agreement.
Short-term Payment Plan: A short-term payment agreement is available for taxpayers who owe $100,000 or less in combined tax, interest, and penalties. The plan lasts for up to 180 days.
Long-term Payment Plan: A long-term payment agreement is available for taxpayers who owe $50,000 or less in combined tax, penalties, and interests. Long-term payment plans may include:
The full-pay non-streamlined installment agreement (NSIA)
The 36-month payment plan also referred to as a guaranteed installment agreement (GIA)
The 72-month payment plan also referred to as a streamlined installment agreement (SLIA)
A seasoned attorney can evaluate your unique financial circumstances and enlighten you about the eligibility requirements of each payment agreement. If you’re in the Reno, Nevada area, reach out to the Law Office of Scott N. Tisevich to explore your options.
Qualifying for a Payment Plan
To qualify for a payment plan, you must meet the following requirements:
You are an individual who owes $100,000 or less in combined income tax, interests, and penalties.
You are a business that owes $25,000 or less in payroll taxes.
You have filed all required income tax returns.
You owe more taxes than you can afford to pay in full.
You agree to pay your tax debts within the specified time under your plan.
You’re not in any bankruptcy proceeding.
A reliable Nevada unfiled tax return lawyer can help determine whether you qualify for an IRS payment plan and walk you through the legal processes involved.
Revising an Existing Tax Payment Plan
Additionally, you may be able to adjust your existing tax payment plan using the Online Payment Agreement tool. This allows you to do the following:
Modify the type of your current plan
Modify your monthly payment due date
Modify your monthly payment amount
Convert an existing payment agreement to a Direct Debit agreement
Change the account number and bank routing on a Direct Debit agreement
Reinstate your plan after a default
Once you submit the new changes, the IRS will review your application and determine whether to approve your request. Generally, your modification application will be rejected unless your new monthly payment amount meets the required amount. A trusted lawyer can guide you through the process and help you navigate crucial decisions when seeking payment plan modifications.
Speak With an Experienced Tax Attorney
When overwhelmed with tax debts, an installment plan is among the available options to settle your past-due taxes and achieve relief. However, it is important that you understand the benefits, drawbacks, eligibility requirements, and limitations of the tax debt installment plan. Scott N. Tisevich, Attorney at Law, has devoted his career to guiding individuals and businesses through the complex procedures involved in filing back taxes when owing more than they can afford.
As your attorney, Scott can enlighten you about the requirements and differences between short-term payment plans and long-term payment plans and help determine the right one for your individual situation. He will then guide you through the legal steps involved, help negotiate a reduced payment or feasible plan with the tax authorities and do everything he can to help you pursue the debt relief you deserve.
Contact the Law Office of Scott N. Tisevich today to schedule a simple case assessment with a trusted tax lawyer. Attorney Scott N. Tisevich can offer you the skilled advocacy and personalized legal guidance you need in your tax debt matters.