You’re not alone if you’re trying to manage tax debt. Millions of taxpayers have back taxes, and the IRS has a simple option that many people turn to: payment plans. Setting up a payment plan allows you to break up your tax debt into monthly installments, and it protects you from collection actions from the IRS and the state. 

A tax attorney can help you navigate the application process and access other tax resolution services as needed. Ready to get relief now? Damiens Law can assist both individuals and businesses with installment agreements on IRS, Mississippi, and Tennessee tax debt, as well as other state tax debts. We provide customized legal guidance and strategy to all our clients. Contact us today to set up a consultation. 

Owe Taxes and Can’t Pay in Full? Then, You’re in the Right Place

Tax debt is one of the biggest drivers of stress for Americans. You may feel completely overwhelmed by your balance, especially as the IRS continues to send you notices, pressuring you to pay now and making threats if you don’t. 

But even if you can’t make a lump-sum payment, you have options. IRS and state installment agreements let you pay a set payment each month until your balance is paid off, making it much more feasible to get on top of your debt.

Our firm has helped many taxpayers resolve their tax debt through installment agreements. We’ll work with you whether you’re dealing with state taxes, the IRS, or both.

Payment Plan Services for Individuals and Businesses

Our experienced tax attorneys help taxpayers through the payment plan process to address a range of tax challenges. Here are signs you need our services, whether related to IRS or state taxes in MS or TN:

• You owe the IRS or the state taxes, and you can’t afford to pay in full.
• You continue to receive IRS or state notices by mail that demand payment.
• You qualify to set up online payments, but aren’t sure if that’s the best option.
• You don’t qualify for an online payment plan and need help dealing with non-streamlined options. 
• You’re facing collection actions, such as liens or levies, that you need to stop.
• You run a business and are facing payroll debt or sales tax debt.
• You have defaulted on your current payment plan.
• You can no longer afford the payments of your existing installment agreement.

People often feel embarrassed when they get into tax debt – but we’d like to reassure you that these situations are more common than you may think. We’ve seen it all at Damiens Law, and our experienced attorney is here to guide you through the payment plan process, answering your questions and helping you explore all the options along the way.

How Tax Debt Turns Into a Bigger Problem

Unfortunately, the longer you ignore your tax debt, the more your balance grows. Eventually, the IRS or the state will go after your income or assets to collect the debt. To protect yourself, you should act quickly. 

Here’s how tax debt escalates:

• When you miss a tax payment deadline, the IRS or state starts charging you penalties and interest immediately. 
• You’ll get escalating notices in the mail if you do nothing, as well as additional penalties and interest charges on your account.
• If you don’t take action, the IRS may escalate your case further, and you could be at risk of liens, levies, and wage garnishment.
• The longer you delay, the fewer options you’ll have to address the debt quickly.

Payment plans are easy to request, and most taxpayers qualify. Talk to us right away to get started on the process to get out of debt.

How Damiens Law Helps With Payment Plans

When you work with our team to get out of tax debt, here are some steps we may take to get started with payment plans:

• Review your tax transcripts and evaluate your total tax liability.
• Determine the best path for resolution, even if it’s not a payment plan.
• Request and structure payment plans based on your budget and realistic monthly payments.
• Prepare all required forms and financial documents, and submit them to the IRS and the state.
• Communicate on your behalf with the IRS and state agencies, as necessary.
• Ensure you avoid default on your agreement in the future and maintain compliance.
• Modify existing payment plans if needed based on changes to your finances or situation.

While these are the general services we provide, each case is different. We’ll work closely with you to provide personalized options to resolve your tax debt as efficiently as possible.

Types of IRS and State Payment Plans

Our attorneys will explain everything you need to know about payment plans and how they typically work. Here’s a brief look at what you can expect:

IRS Payment Plans

The IRS offers several types of payment plans for individuals and businesses. You can often take until the collection expiration date to pay (about 10 years after the tax was assessed) and can use direct debit, so you don’t forget to make payments. We can negotiate plans without a financial disclosure in many cases, but if the IRS requires financial details, we’ll leverage our experience to get you the best deal possible. 

Partial payment installment agreements (PPIAs) may be an option if you’re experiencing financial hardship. You can make a lower monthly payment with a PPIA, as they’re based on affordability rather than your total debt balance. You’ll make your payments until the Collection Statute Expiration Date (CSED), and then any debt remaining on that date will expire.

Tennessee & Mississippi Payment Plans

Both Tennessee and Mississippi also offer payment plans for state tax debt. Financial disclosures may be required, and the terms of these agreements vary based on how much you owe. 

If you have both state and federal tax debt, coordination between the two is possible. We’ll help you understand laws in both realms, ensuring you’re set up for success.

Our Process: What to Expect

While each case is different, you can expect the process to look something like the following:

• Initial evaluation: We’ll take a look at your tax debt situation and other financial details.
• Identification of missing filings: Our team also helps you get up to date on any outstanding tax returns.
• Determination of the best fit: If we determine that a payment plan is your best option, we’ll work with you on setting up the right structure. If not, we’ll help you explore alternatives.
• Submission and negotiation: We’ll talk to the IRS for you, if necessary, and submit your request in a timely manner.
• Ongoing compliance requirements: You’ll have all the tools you need to stay compliant moving forward, avoiding default.

Get in touch with our office today to find out more about our process.

When Is a Payment Plan the Right Solution?

Remember: not all tax debt can be taken care of with a payment plan. If you can afford monthly payments, a payment plan can be a great option, but it may not be the best option if:

• You can’t afford monthly payments.
• You qualify for an offer in compromise to settle for less than owed. 
• You can’t afford to pay anything now and would benefit from currently not collectible (CNC) status instead.
• Your issue could be addressed with penalty abatement or another solution.

We will never recommend a payment plan when it’s likely to lead to default. Damiens Law will ensure it’s the best course of action before we advise you to proceed.

When to Hire a Payment Plan Attorney

Our team will help you no matter what your tax issue looks like. However, some taxpayers may not need an attorney for every situation. If you’re considering a payment plan, these are good reasons to seek legal help:

• Large tax balance
• Action from the state or IRS
• Business tax liabilities
• Prior default
• Affordability questions
• Don’t qualify for online plan
• Appealing a payment plan rejection

If you have a small balance you can handle yourself online, you may not need full representation. Reach out for a consultation if you’re not sure.

Why Damiens Law?

Finding the right tax attorney is key to getting your tax debt under control. There are a few good reasons to go with Damiens Law.

Attorney Representation

Our firm provides complete representation from our experienced tax attorneys – whether you need to negotiate a payment plan or take a dispute all the way to Tax Court, we’re here for you.

State and IRS Experience

Often, your tax issue involves both state and federal taxes. We’re experienced with state laws as well as IRS regulations. We develop a strategy based on the collection processes of all the agencies involved.

Individual and Business Help

Our focus is on both individuals and businesses, so whatever type of tax issue you’re dealing with, we can help create a custom solution. 

Preventing Default

Unfortunately, payment plans have a high risk of default – typically, because they’re set up by taxpayers or inexperienced professionals who don’t understand the risks or options. We go beyond helping you set up a payment plan, ensuring you can afford your payments and have a low risk for defaulting in the future.

Serving Tennessee and Mississippi Clients

Our local presence is in Tennessee and Mississippi, and we regularly serve clients with tax issues in those states. We have deep knowledge of the state laws that impact you.

FAQs About Payment Plans

Should I Request an IRS Payment Plan?

A payment plan may be right for you if you can afford monthly payments on your debt. They’re easy to request online for most taxpayers, and you can set up a structure you can afford each month. 

Can Businesses Qualify for Payment Plans?

Yes, businesses can usually qualify for payment plans with the IRS or the states of Mississippi and Tennessee. But the rules are complex, and it helps to have a professional negotiate for you.

How Long Will My Payment Plan Last?

The length of your plan will depend on your balance due, your monthly payment, and when the tax debt expires. IRS payment plans can be up to 10 years long. 

How Will My Payment Plan Work?

The IRS will determine your monthly payment based on the information in your application. Then, you can select the date you want to make your payment each month, which you can do through direct debit or manually. As long as you make your payments on time and continue filing taxes as required, you’ll stay in good standing with the IRS while you pay off your debt.

Can I Set Up a Payment Plan for State Taxes?

Yes, most states offer payment plans to help you pay your state taxes. Mississippi and Tennessee both offer payment plans for most taxpayers.

Get Payment Plan Help from Damiens Law

The best step you can take right now to get out of tax debt is contacting the team at Damiens Law. We’ll review your case and transcripts and guide you through the payment plan process if that’s the best path forward. 

Contact our office to set up a consultation and address your tax debt now.