This article is an article accompanying my latest article titled Owe the IRS 50,000 or Less? Do you want a payment agreement? Try to do it yourself. In the IRS article, I wrote about the new “Fresh Start” initiative to enter into a instalment payment agreement with the IRS if the taxpayer owed $50,000 or less. You don`t need a CPA or lawyer to negotiate a payment agreement. You can do this yourself by calling a toll-free IRS number. If the FTB rejects the application for payment in instalments, the taxable person may request an independent administrative review. Accordingly, the taxable person must send the request in writing within thirty days from the date of the rejection letter. The taxpayer must email it: You may be allowed to skip your next payment if: To change your current instalment payment contract, call us at (800) 689-4776. The payment agreement with the FTB must be made by electronic withdrawal of the currency. You will need to be informed of your deposits and payments in the future. This optimized payment agreement is subject to a fee of $34 USD and these fees are added to your credit due. If the FTB accepts the requirement of the instalment payment agreement, the FTB sends a notification to the taxable person confirming the monthly amount and due date of each monthly payment. However, if the taxpayer does not comply with the above conditions, the FTB reserves the right to terminate the instalment payment agreement. Before terminating a payment contract by instalments, the FTB sends a notification to the taxable person 30 days before the termination.
The FTB`s communication shall state the reasons for the termination and communicate instructions on the rights of the taxable person. Can`t pay your tax bill and want a payment plan? You can request a payment contract in instalments. This form is a request for a instalment payment agreement. If approved, taxpayers would have to pay the necessary taxes month after month. However, they must first determine whether they are eligible to execute the application. The main eligibility requirements are: the tax debt does not exceed $25,000; the payment period does not exceed 60 months; all necessary tax returns are filed; and there is no other instalment payment agreement. The information provided in the form is used by the tax board to take a decision on the case of a taxable person and to approve or reject the application. Companies liable to FTB can also enter into a instalment payment agreement over the phone, but this is more complicated and more documents are needed.