What is a Tax Payment Plan?
A tax payment plan is an agreement to pay your tax liability in installments over a set period of time. It is also commonly referred to as an Installment Agreement, and it allows individuals and businesses who are unable to immediately resolve all their outstanding tax to still make full payment in smaller, more manageable amounts over time.
To be eligible for a tax payment plan, all required returns must be filed, and any required deposits must be made timely. Please note that not all individuals and businesses have a tax deposit requirement; Omni can help you determine if this is a requirement for you. IRS Installment Agreements generally require equal monthly payments, and the payment amount will be based on the amount of taxes owed and on the taxpayer’s ability to pay that amount within the time legally available for the taxing authority to collect. Depending on the amount of tax liability and your ability to pay, you may need to submit a financial statement to qualify for an Installment Agreement.