There are several benefits to owning and operating your own business in Atlanta, but most people agree that having to work with the IRS to file taxes is not one of them. Even worse, what happens if you actually owe an amount in taxes, fees or penalties that you cannot pay by the due date? An experienced tax lawyer can help you navigate what to do, whether that means appealing to the IRS or setting up a payment plan.

The IRS has set up payment plans for those occasions when an individual or business cannot pay the full owed amount by the original filing due date. These plans can help you avoid some of the poor consequences that come with failing to pay your taxes.

Who is eligible for a payment plan? 

Anyone can request a payment plan agreement. The IRS allows both short-term and long-term plans.

The short-term payment plan:

  • is only available for individuals
  • requires payment of the money owed and any accrued interest/penalties within 120 days of the filing due date
  • does not add a user fee

The long-term payment plan:

  • is available for individuals and businesses
  • requires payment of the money owed and any accrued interest/penalties upon an agreed timeline longer than 120 days
  • adds a user fee ($31 if paying monthly installments via direct deposit, $149 if paying monthly installments through another method)

What documents do you need to apply for a payment plan? 

As a business owner, you will need to complete a payment plan application online. You should know your business’ Employer Identification Number, the address of the business as listed on the most recent tax return and the date you established the business.

You may also need to verify your identity by giving a phone number registered in your name, the number of a financial account in your name or requesting an activation code by postal mail.