Business Tax Payment Plans

Individual taxpayers who are unable to pay the taxes they owe to the IRS are often eligible for payment plans that allow them to pay those debts off over time, with fewer penalties. Many, however, are unaware that such options also exist for businesses, which can also qualify for long-term payment plans.

Installment Agreements for Businesses 

Companies that owe taxes and which cannot make full payment may be eligible for a long-term payment plan, or an installment agreement. These agreements allow qualifying business owners to pay their taxes on a monthly basis. Only certain businesses, however, are eligible for long-term payment plans, including those which:

• Have filed all of their required returns; and
• Owe $25,000 or less in combined taxes, penalties, and interest.

For help determining whether your own company could be eligible for an installment agreement to pay off tax debt, please reach out to our legal team today.

Applying for an Installment Agreement

 When applying for a long-term installment agreement, business owners will need certain information, including:

• Their Employer Identification Number (EIN);
• The date their company was established;
• The Caller ID from the IRS notice;
• Their business address; and
• The amount due.

Once it is received, the IRS will review the company’s application and if it approves it, will begin charging accrued penalties and interest until the amount owed is paid in full.

Monthly Payments 

There are two main ways to make monthly payments on a long-term installment agreement, including by:

• Paying the amount via Direct Debit (automatic payments from a checking account), which is required for balances that exceed $10,000; or
• Paying the amount via non-direct debit (non-automated) electronically online, or by phone, check, money order, or debit or credit card.

There are advantages and disadvantages to both forms of payment, so if you have questions about the most effective way to pay off your business’s tax debt, you should consider reaching out to a tax attorney for advice.

Reviewing/Revising an Installment Agreement

 Once a payment plan is in place, a business owner can view the details of that plan (i.e. the type of agreement, the due date, and the balance remaining) by signing into their account online. They also have the option of making certain modifications, like changing:

• Their monthly payment amount;
• Their monthly payment due date;
• Their existing agreement to a Direct Debit agreement; and
• The bank routing and account number on a debit agreement.

If the taxpayer’s suggested new amount doesn’t meet the IRS’ requirements, then he or she will need to revise it to meet the minimum requirement payment amount. If, however, a business cannot make the minimum payment, then the owner will need to complete Form 433-B and submit it to the agency.

Call Experienced Tax Attorney Ronald Cutler, P.A. for Help 

If your business owes taxes and you cannot pay the amount in full, you may be eligible for a payment plan. To learn more about how to qualify for these options, please call CPA, former FBI Special Agent, and dedicated Florida and IRS tax debt and installment agreement attorney Ronald Cutler, P.A. at 386-490-9949 today.

Sources:

 irs.gov/payments/online-payment-agreement-application

irs.gov/pub/irs-pdf/f433b.pdf