Individuals and Businesses Can Apply for a Payment Plan with the IRS

The IRS has payment plan options for taxpayers. The application allows you or your authorized representative (Power of Attorney) to apply for an installment agreement if you cannot pay your taxes in full at this time.

Qualifying as an Individual

If you owe $50,000 or less in combined tax, penalties and interest, and filed all required returns. You may also qualify for a short term agreement if your balance is under $100,000. You will need the following to apply:

  • Name
  • Valid e-mail address
  • Address from most recently processed tax return
  • Date of birth
  • Filing status
  • Your Social Security Number (or spouse’s if filed jointly) or Individual Tax ID Number (ITIN)

If you previously registered to get an Identity Protection PIN (IP PIN) or IRS transcript, you may log in using the same user name and password.

Applying as Power of Attorney – POA for an individual? You need:

  • Taxpayer’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
  • Your Centralized Authorization File (CAF) number
  • Caller ID from notice or POA’s signature date on Form 2848
  • Taxpayer’s last year’s Adjusted Gross Income (if 2014 was recently filed, then use 2013’s AGI)

Qualifying as a Business

You owe $25,000 or less in combined tax, penalties and interest for the current year or last year’s liabilities, and filed all required returns.

  • Your Employer Identification Number (EIN)
  • Date your EIN was assigned (MM/YYYY)
  • Address from most recently processed tax return
  • Your Caller ID from notice

Applying as Power of attorney – POA for Business  for a business? You need:

  • Taxpayer’s Employer Identification Number (EIN)
  • Your Centralized Authorization File (CAF) number
  • Caller ID from notice or POA’s signature date on Form 2848

Based on the type of agreement requested, you may also need:

  • Business address of most recently filed tax return
  • Tax form filed or examined
  • Tax period filed or examined

 

Did you receive an IRS notice regarding Payment?

Have you received a CP504 – Intent to Levy Notice?

If you owe taxes and have not paid them for 2014, they are due immediately. Once you receive an “Intent to Levy” notice, you will mainly have two options:

  1. Pay the full balance due
  2. Get an installment agreement – if paying the entire amount is not possible, contact the IRS at the phone number at the top of the notice to determine if an installment agreement can be made.

It is very important to notify your tax advisor if you receive an IRS notice.

 Ignoring Notice CP504

If you ignore the “Intent to Levy” notice, the IRS will seize (levy) your state income tax refund and apply it to pay the amount you owe. They may then seize (“levy”) or take possession of your other property or your rights to property. As defined by the IRS, property includes:

  • Wages, real estate commissions, and other income
  • Bank accounts
  • Business assets
  • Personal assets (including your car and home)
  • Social Security benefits

If the IRS does not hear from you, a Notice of Federal Tax Lien will be issued on your property at any time.

Liens can cause issues, if the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating because creditors are publicly notified that the IRS has priority to seize your property.

To avoid the pitfalls of ignoring an IRS Intent to Levy notice, contact Green Financial Services @ 888.391.9993.

For more information.

 

 





 



 

 









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Did you receive an IRS notice regarding Payment?
Have you received a CP504 – Intent to Levy notice?
If you owe taxes and have not paid them for 2014, they are due immediately. Once you receive an “Intent to Levy” notice, you will mainly have two options:
  1. Pay the full balance due
  2. Get an installment agreement – if paying the entire amount is not possible, contact the IRS at the phone number at the top of the notice to determine if an installment agreement can be made.
It is very important to notify your tax advisor if you receive an IRS notice.
Ignoring Notice CP504
If you ignore the “Intent to Levy” notice, the IRS will seize (levy) your state income tax refund and apply it to pay the amount you owe. They may then seize (“levy”) or take possession of your other property or your rights to property. As defined by the IRS, property includes:
  • Wages, real estate commissions, and other income
  • Bank accounts
  • Business assets
  • Personal assets (including your car and home)
  • Social Security benefits
If the IRS does not hear from you, a Notice of Federal Tax Lien will be issued on your property at any time.
Liens can cause issues, if the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating because creditors are publicly notified that the IRS has priority to seize your property.
To avoid the pitfalls of ignoring an IRS Intent to Levy notice, contact Green Financial Services.
More information: http://www.irs.gov/Individuals/Understanding-your-CP504-Notice