Southern Network Solutions INC
Tax Payment Plan A payment plan is the most common resolution for tax liability. While each taxing authority has its own rules, the IRS and all 50 states offer some version of a payment plan.
What is a Tax Payment Plan?
A tax payment plan, also known as an Installment Agreement, allows you to pay your tax liability in installments over time. This option is available for individuals and businesses who can’t immediately pay their full tax debt. It enables you to make manageable payments until the debt is fully paid off.
To qualify for a tax payment plan, all required tax returns must be filed, and any necessary deposits must be made on time. Not all individuals and businesses have a tax deposit requirement; Southern Network Solutions can help you determine if this applies to you. IRS Installment Agreements typically require equal monthly payments based on the amount owed and your ability to pay within the time legally available for collection. Depending on your tax liability and ability to pay, you may need to submit a financial statement to qualify.
How do I set up an Installment Agreement with the IRS? If you owe $50,000 or less in individual tax liability, there are two plans available that don’t require financial information. Unless you can pay the full amount within 180 days, there are fees associated with setting up an Installment Agreement.
If you owe more than $50,000, have business tax liability, or need assistance setting up a tax payment plan, call us.
If you owe more than $50,000, have business tax liability, or need assistance setting up a tax payment plan, call us.