San Francisco IRS Payment Plan Attorney

 you owe $50,000 or more in taxes and cannot pay, you may be able to negotiate a payment plan with the Internal Revenue Service (IRS). Given that the IRS makes it difficult to renegotiate payment plans in the event of default and may commence collection activities, it is crucial to have the advice and guidance of an experienced tax attorney.

Regal Tax & Law Group, PC represents individuals and business owners with high-level tax issues in California and throughout the nation. Whether you need to consider an IRS payment plan or you have already entered into an installment agreement and cannot make the payments, we can help. 

Tax attorneys Regina Unegovsky and Erin Daly are highly regarded for helping clients resolve the most challenging tax controversies. When you consult with us, we will review your finances and tax debt and advise you about all of your legal options. Contact our San Francisco office today for an initial consultation.

Why You Need a San Francisco IRS Payment Plan Attorney

The IRS permits taxpayers who are unable to pay their taxes in full by the applicable deadline to create installment plans. An IRS payment plan allows you to pay your tax liabilities over a set period of time and may help to avoid tax liens and other consequences, depending on the amount of taxes you owe. To be eligible for an installment plan, you must be current on your income taxes and meet other requirements. 

When you consult with Regal Tax & Law Group, PC, we will help determine whether an IRS installment agreement is the right option for you. The IRS offers a number of different payment plans based on the assessed tax balance. While the majority of taxpayers owe less than $25,000, the IRS also offers repayment plans to those with far higher tax liabilities. 

Streamlined Installment Plans

For taxpayers who owe $50,000 or less in taxes, penalties, and interest, the IRS offers streamlined installment agreements to repay the debt in 72 months. This is an online application process that does not require additional financial information. The streamlined program is designed for:

  • Individuals and out-of-business sole proprietors with an assessed tax balance (taxes, penalties, interest of $50,000)
  • Out-of-business taxpayers with assessed balances up to $25,000
  • In-business taxpayers with income tax only assessed balances up to $25,000

The streamlined process is designed to encourage taxpayers to enter into an arrangement to pay their taxes through direct debit or payroll deductions. Moreover, liens are not assessed against taxpayers who owe $25,000 or less, while those who owe up to $50,000 in taxes can avoid liens by using a direct payment option. According to the IRS, the majority of individual taxpayers with a balance due qualify for streamlined installment plans. 

Non-Streamlined Installment Plans for Taxpayers Owing More Than $50,000 in Taxes

Taxpayers with a total assessed balance of more than $50,000 may be eligible for a non-streamlined payment plan. Unlike the streamlined program, the agreement cannot be made online, you must contact the IRS directly to negotiate the payment plan. This program previously allowed individual taxpayers (businesses are not eligible) with owed amounts of between $50,000 and $100,000 to enter into a maximum of 84-month payment plan. 

As of March 2020, however, the IRS revised the 84-month plan and now allows taxpayers who owe amounts between $50,000 and $250,000 to pay the balance owed before the 10-year collection statute of limitations expires. Taxpayers can also avoid filing the Collection Information Statement (Form 433-A) and are allowed to provide limited financial information if they agree to a direct payment. 

Given the unprecedented economic conditions due to the COVID-19 pandemic, the IRS has made installment plan options more favorable to taxpayers. However, IRS collectors have significant leeway in making determinations about the amount you can pay. It is unclear how long the new non-streamlined installment option will remain in effect, however. Ultimately, it takes a skilled tax attorney to negotiate an installment agreement that works for you.

How Regal Tax & Law Group, PC Can Help

If you owe the IRS more than $50,000, you need the informed representation we provide. When you become our client, we will evaluate your finances to determine the amount you can pay and negotiate a payment plan with the IRS. If your IRS installment agreement is approved, you must pay each monthly installment on time, file future tax returns, and promptly pay future taxes. 

In the event of default, however, the IRS may revoke your plan, initiate collection activities, and assess additional fees and penalties. In this situation, our experienced tax law attorneys can help you file an appeal with the IRS and negotiate on your behalf. We have a proven history of helping our clients avoid tax penalties and routinely resolve over $5 million in tax issues each year on their behalf

Contact Our Experienced San Francisco Tax Law Attorneys

When you consult with Regal Tax & Law Group, PC, we will help you negotiate a sensible IRS payment plan and provide you with ongoing counsel to ensure that you meet the terms and conditions of your installment agreement. 

If you cannot make the payments after you obtain an installment agreement, will work with you to renegotiate with the IRS  to reduce the monthly payment. Our tax attorneys will also help you explore other payment options such as an offer-in-compromise. Above all, we will always work in your best interests and make sure your rights and your financial future are protected. Contact us today for a consultation.