Did you know over 10 million people in the U.S. owe back taxes, and many New Yorkers are in the same boat? If you’re feeling overwhelmed by unpaid taxes, interest, or penalties, you’re not alone. Setting up an IRS installment agreement can help you break your debt into manageable payments and avoid harsh IRS actions.
At Thorgood Law Firm, we know how tough dealing with tax debt can be. We’re here to walk you through the process and help you understand your options for setting up an IRS payment plan.
Understanding IRS Installment Agreements in New York
An IRS installment agreement allows you to pay off your tax debt over time, instead of all at once. This helps avoid penalties like wage garnishments or tax liens. The IRS will assess your finances to create a plan that fits your particular situation. Depending on how much you owe, there are different options, like streamlined or non-streamlined plans.
Once set up, you’ll make monthly payments until the debt is cleared. Just remember to stay on track—missed payments can result in penalties or cancellation of your agreement and the filing of tax liens. A New York tax attorney can guide you through the process and ensure the best terms for you.
Types of IRS Installment Agreements
There are a few different types of installment agreements to consider, depending on your tax debt and financial situation:
- Streamlined Installment Agreement: For taxpayers owing $50,000 or less in total tax, penalties, and interest. This plan is quick to set up and requires minimal documentation.
- Guaranteed Installment Agreement: For those owing $10,000 or less. It guarantees approval if all required returns are filed and certain conditions are met.
- Non-Streamlined Installment Agreement: For individuals with more than $50,000 in debt or those needing longer repayment periods. This plan requires more documentation and takes longer to set up.
- Partial Payment Installment Agreement (PPIA): If you can’t afford the full amount, the IRS may allow you to pay less over time. This option is for those facing financial hardship.
Each type has its benefits and requirements, so it’s important to consult with a New York tax lawyer to determine which one works best for you.
What if You Can’t Afford the IRS Payment Plan?
If you can’t afford your IRS payment plan, there are options available. You can request a lower monthly payment by submitting updated financial documents showing your current income and expenses. The IRS may adjust your plan accordingly.
Alternatively, you can apply for a Hardship Plan or Partial Payment Installment Agreement (PPIA), where you make smaller payments over time. In some cases, the IRS may reduce the total amount owed.
Other options, such as temporary delays or an Offer in Compromise (OIC), may also be available. A New York tax lawyer can assist you in exploring these alternatives and negotiating the best possible terms for your specific situation.
Who’s Eligible for an IRS Payment Plan in New York?
Not everyone automatically qualifies for an installment agreement, but many taxpayers do, depending on factors such as the amount of tax debt and their ability to make payments.
Here’s what you need to know:
- Amount Owed: If you owe less than $50,000, you may qualify for a streamlined installment agreement, which is easier to set up and doesn’t require extensive documentation.
- Filing Status: You must have filed all required tax returns. If you haven’t, you’ll need to get those filed before applying for a payment plan.
- Ability to Pay: The IRS wants to know that you have the financial ability to make monthly payments. They may ask for proof of income, expenses, and assets to assess your situation.
In New York, the cost of living can add extra pressure when dealing with tax debt. Fortunately, the IRS considers your financial situation when determining eligibility, and a New York tax attorney can help ensure that your case is handled correctly.
What Happens If You Miss a Payment on Your IRS Installment Agreement in New York?
Life happens, and sometimes a payment may be missed. If that happens, don’t worry. The IRS may allow you to reinstate your agreement, but you’ll need to take action quickly.
Contact the IRS or your tax professional right away. Depending on your situation, you may be able to modify your payment terms, set up a new plan, or reduce your monthly payments. The IRS is flexible for taxpayers facing financial hardship, and a tax lawyer can help guide you through the process.
A New York tax lawyer can also assist in adjusting your agreement and avoiding additional penalties.
Why You Should Work with a New York Tax Lawyer for Your Installment Agreement in New York
Setting up an IRS installment agreement can be challenging, but with a New York tax attorney by your side, the process becomes much easier. A tax lawyer understands the IRS application process and can help secure the best terms for your payment plan.
The IRS requires specific forms and supporting documents, and a lawyer can ensure all paperwork is completed accurately and submitted on time. Additionally, with experience handling New York-specific tax issues, a New York tax lawyer understands local nuances and can provide tailored advice for your situation.
Call a New York Tax Attorney Today for a Free Consultation
Tax debt can feel overwhelming, but you don’t have to face it alone. At Thorgood Law Firm, our experienced New York tax attorneys are here to guide you every step of the way. We’ll help you understand the IRS installment agreement process, negotiate the best possible terms, and ensure you don’t miss any important deadlines or opportunities.
Don’t let tax debt control your life. Call Thorgood Law Firm now at +212-490-0704 or contact us online to start resolving your tax issues and get back on track. We offer a free, no-obligation consultation to discuss your options and create a personalized plan tailored to your situation.
Let us help you find peace of mind, eliminate stress, and secure a fresh financial start.
