Did you know that if your total tax burden is greater than $50,000 personally you’re required to fill out a financial statement to help determine how much you have to pay per month? The IRS has several Collections Information Statements to pick from and choosing which one to file isn’t always as easy as it seems. You already know that here at Reliance, we want to provide you with a sense of ease no matter the situation.
We’re here to give you a little guide to payment plan options and which one may be right for you.
Types of Payment Plans
Short-term Payment Plan (120 days or less)
– $0 setup fee
– + accrued penalties and interest until the balance is paid in full
– No financials required
Balances of 49,999 or less
Streamlined Installment Agreement
– Does not require financials
– Does not require bank statements or copies of bills
– If you have a business balance of $24,999 or less you may also qualify for this program
Balances of $50,000 or higher
Formalized Installment Agreement
– Requires a financial statement (433 A,F or B)
– Requires 3-6 months of bank statements along with copies of monthly bills
– If you have a business balance of $25,000 or higher you will need to use this option
– Please NOTE* If your financials prove that you cannot afford to pay off the balance in full before your statutes expire you may qualify for a Partial Pay
– Installment Agreement
Both the Streamlined & Formalized Installment Agreements will have the following that apply:
– Between a $31 – $149 setup fee (low income: setup fee waived)
– + accrued penalties and interest until the balance is paid in full (Penalties can be reduced from 6% to 3%)
– You may also choose to setup on a Direct Debit for your Installment agreement which would require you to fill out a 433-D
More information on payment plan options can be found here.
Which Plan is Right for Me?
At Reliance, we want you to feel confident no matter what the circumstances are. Let us make this easy! Find out which type of Installment Agreement is right for you by calling us today at (720)452-2915 or fill out our contact form and we’ll get back to you!