Tax Payment Plans by Order of Severity of Tax Situation

Not all tax payment plans are the same. They may be similar in terms of their structure, but all of them offer unique features that you have to be aware of. Your tax situation and how severe your debt has become will determine the type of tax payment plan that you use. There are five basic structures. They include: guaranteed installment agreement, streamlined installment agreement, in-business trust fund agreement, long term installment agreement, and installment agreement on specified balance due accounts.

Before you can do anything, you have to know how much you owe the IRS. This will determine the type of structure and how you will move forward.

If you owe $10k or less and you have filed all past returns, the IRS guarantees to offer you a payment plan as long as you can pay the entire amount within three years.

If you owe between $10,001 and $24,999 and you have filed all proper returns, you will have to negotiate a streamlined agreement with the IRS. This will result in a minimum amount that you must pay based on your financial disclosure.

If you owe between $25k and $100k you will have to supply the IRS with a complete financial disclosure. This is done by filling out a 433-A, also known as a Collection Information Statement. There is a chance that you will also be asked to verify income and expenses.

If you owe more than $100k your entire case will be forwarded to a special unit within the IRS. Known as the Large Dollar Unit, they are responsible for cases in which taxpayers owe more than $100k. If you are in this position you definitely want to get the help of a professional tax settlement firm. This division of the IRS is harsh, and will want you to attempt to liquidate all assets, including your home, before they consider a tax payment plan.

The tax payment plan that you use will be based on how much money you owe and what the IRS agrees to. If you are confused it is best to hire a professional to negotiate with the IRS on your behalf - this will ensure your success.

IRS Tax Payment Plan
For more information on different types of IRS Payment Plans / Installment Agreements or you want professional help visit BackTaxesHelp.com today.