Payment Plans

If a taxpayer cannot afford to pay their full tax bill, the IRS will sometimes agree to settle some of the taxes owed. This can happen in a few different ways, including offers in compromise, currently not collectible status, and partial payment installment agreements.

If you can't afford to pay your New York state income or business taxes, you may be able to set up a payment plan. To help you figure out if you qualify, this post outlines the rules and application process. Then it explains what to expect when making payments on a state tax debt.

You may have more options for paying your New York State tax bill than you realize. Whichever option you choose, don’t wait too long. Here’s what you should know.

Form 433-D, Installment Agreement, is a single-page form that outlines the terms of an installment agreement between an individual or business and the IRS. It is used to finalize installment agreements, including streamlined, non-streamlined, direct debit, financially verified, and partial payment installment agreements.

The IRS sends a CP523 notice to taxpayers who have defaulted on their installment agreements, which are monthly payment plans set up to pay off tax debt. This can happen for a variety of reasons, including missed payments, failure to file tax returns, unpaid taxes, or not responding to IRS requests for financial information.

If you have outstanding tax debts your account is typically sent to the IRS Automated Collection System (ACS). The ACS is a system used to manage the collection of outstanding IRS tax debts from individual taxpayers and businesses. If you have received a notice from IRS ACS and are unsure what to expect, here’s everything you need to know.

The Form 433-B (OIC) is used to apply for an offer in compromise on business taxes. It requires detailed information about the business, including financial information, assets, liabilities, and income and expenses. The OIC version of the form has some notable differences from the standard version, particularly in determining equity in business assets and reporting business income and expenses.

This guide outlines how to make changes to your IRS payment plan, such as reducing your monthly payment, changing your payment date or method, or adding a new tax debt to your plan. If you can no longer afford to make payments, you may be able to apply for currently not collectible status or an offer in compromise.

If you’re requesting certain forms of tax relief from the IRS, they may want to verify your financial information. Depending on the type of relief you are asking for, they either want to see if you are able to make the monthly payments you’re requesting or if you have enough financial need for the assistance you are asking for.

If you have a business tax concern, we can help. At the Timothy S. Hart Law Group, we understand the complex range of problems and concerns faced by New York business owners. Whether you're just getting ready to launch or ready to shut down operations, we can help you.