Long Island Tax Attorney: Payment Plans

Understanding Tax Payment Plans

A payment plan, often referred to as an installment agreement, is designed to help you manage your payments toward the taxes you owe. The best option is always to attempt a lump sum payment to avoid any unnecessary penalties and interest that gathers over time. However, for taxpayers who have run into significant financial complications, the IRS offers methods that at least stretch the whole amount owed into smaller, more manageable payments. If you are considering setting up a payment plan to resolve your debt, contact a Long Island tax lawyer before making any decisions.

To be eligible for a payment plan, all returns that are due must be filed first and foremost. A general term that applies to a payment plan consists of uniform monthly payments that are determined by the amount of the full amount due juxtaposed with the taxpayer's ability to pay within the time allotted for the IRS to collect. The IRS is legally entitled to the authority of collection over the span of ten years following the original assessment date.

Any refund due within a future year will automatically be applied against the amount owed in a payment plan. If this refund does not satiate the amount needed to complete the entire sum of the payment owed, the payment plan will continue until every term in the plan are finally met. However, taxpayers will be refused their refund if they have any outstanding past amounts that haven't been paid yet, such as state tax, federal tax, child support or a student loan.

A Tax Attorney in Long Island With Experience

There is a large assortment of litigation strategies that prove to be effective when handling personal and business payment plans. Blutter & Blutter has accrued over 50 years of combined experience in dealing with payment plans and other tax law circumstances. The firm can help you get the most out of your options while catering to your legal needs if necessary.

If you would like to consider a payment plan, contact a Long Island tax lawyer for your personal evaluation.