Episode 93: In this episode, Timalyn shares an option for taxpayers who owe the IRS but can’t pay their tax debt in full. It’s called the Simple Payment Plan. It’s a type of IRS Installment Agreement that has now been extended to businesses as well. Timalyn explains what a Simple Payment Plan is, who qualifies, and how to set one up with the IRS. What is a Simple Payment Plan?As mentioned before, a Simple Payment Plan is a type of IRS Installment Agreement with straightforward terms. It does not require financial documents or manager approval. If you don’t qualify, other options may include Penalty Abatement, a Regular Installment Agreement, Partial Pay Installment Agreement, Currently Not Collectible status, bankruptcy, or an Offer in Compromise. Who qualifies for a Simple Payment Plan? The IRS notes that 90% of taxpayers qualify. Taxpayers must be in filing compliance and should be current with estimated tax payments and withholding. Benefits include no financial documentation and no lien determination. A Notice of Federal Tax Lien can affect your ability to purchase property. Individuals with a balance of $50,000 or less may qualify if they can pay the debt before the collection statute expiration date (CSED). This amount includes assessed tax, penalties, and interest. Business taxpayers may also qualify. Without trust fund penalties, the balance must be $50,000 or less. If trust fund penalties are involved, the limit is $25,000, with an exception of $50,000 for sole proprietors who are no longer in business. Simple Payment Plans can be established directly with the IRS or through a private collection agency. How do you set up a Simple Payment Plan? You can set one up when filing a tax return, by mail, online through the online payment agreement application, or by phone. If you qualify while filing a return with a balance due, you can apply using Form 9465, Installment Agreement Request, or Form 433-DOnline setup fees are generally cheaper. Access the online payment agreement application through your irs.gov account. What’s the IRS Payment Plan Phone Number? The IRS online taxpayer accounts are not flawless.For individuals, call 1-800-829-1040, unless your IRS notice provides a different number. The IRS Payment Plan phone number for businesses is 1-800-829-4933. Please note that if you are a Schedule C filer, you may still call the individual phone number unless the balance due is for payroll taxes. If you already feel overwhelmed, remember, you do have the right to representation. A tax professional with Form 2848, Power of Attorney, and Declaration of Representative on file with the IRS can do this for you. Only an Enrolled Agent, such as Timalyn, a Certified Public Accountant, or Tax Attorney, can have a Form 2848 and be your tax power of attorney. Need Tax Help Now? If you need answers to your tax debt questions, book a consultation with Timalyn via her Bowens Tax Solutions website. Book a Call with Timalyn. Please consider sharing this episode with your friends and family. This information might be helpful to someone who really needs it. As we conclude Episode 93, we encourage you to follow Timalyn on social media. You’ll be able to subscribe to this podcast on Spotify, Apple Podcasts, YouTube, and many other podcast platforms. Remember, Timalyn Bowens is America’s Favorite EA, and she’s here to fill the tax literacy gap, one taxpayer at a time. Thanks for listening to today’s episode. For more information about tax relief options or filing your taxes, visit https://www.Bowenstaxsolutions.com/. If you have any feedback or suggestions for an upcoming episode topic, please submit them here: https://www.americasfavoriteea.com/contact. Disclaimer: This podcast is for informational and educational purposes only. It provides a framework and possible solutions for solving your tax problems, but it is not legally binding. Please consult your tax professional regarding your specific tax situation.
