When it comes to dealing with tax issues, understanding and navigating the options can be a daunting task. This is particularly true if you owe money to the Internal Revenue Service (IRS). Fortunately, various IRS payment plans and tax resolution firms like Clean Slate Tax are available to provide the needed assistance. This article will be comparing IRS payment plans with the help offered by Clean Slate Tax.

Understanding IRS Payment Plans

The Internal Revenue Service offers different payment plans for taxpayers who owe money. These plans, structured based on an individual’s financial situation, are designed to help taxpayers pay off their tax debts over time.

  1. Short-Term Payment Plan: This plan allows taxpayers to pay their liabilities within 120 days with no setup fee.
  2. Long-Term Payment Plan: Commonly known as an installment agreement, it gives taxpayers more than 120 days to pay with a setup fee.

Exploring Clean Slate Tax Help

Clean Slate Tax offers various tax resolution services to help taxpayers. Their team of experts assist with IRS negotiations, unfiled tax returns, tax penalty abatement, and more.

  1. Resolution Services: They negotiate with the IRS to help taxpayers settle their debt for less than what they owe.
  2. Tax Preparation: They assist with the preparation and filing of unfiled tax returns.
  3. Penalty Abatement: They can help get penalties reduced or removed.

Comparison Between IRS Payment Plans and Clean Slate Tax

While both IRS payment plans and Clean Slate Tax aim to help taxpayers, the assistance they offer differs in several ways.

  • Expertise: IRS payment plans provide a straightforward way to settle tax debt, but they may not include negotiations for penalty abatement. Clean Slate Tax, on the other hand, has professionals experienced in negotiating with the IRS.
  • Options: With IRS payment plans, taxpayers have limited options. Clean Slate Tax provides more flexible solutions tailored to individual needs.
  • Guidance: IRS payment plans come with completed forms and guidelines, but Clean Slate Tax offers additional guidance to ensure taxpayers understand the process and implications of their choices.

Frequently Asked Questions

What are the fees associated with IRS payment plans?

Short-Term Payment Plans offered by the IRS do not carry a setup fee, while the Long-term (installment agreements) do.

Can Clean Slate Tax help with all types of tax issues?

Yes, Clean Slate Tax can assist with a range of tax issues, including tax debts, unfiled returns, and penalty abatements.

How does an Installment Agreement work?

An Installment Agreement allows taxpayers to pay their tax liabilities over time. Monthly payments are determined based on the amount owed and the taxpayer’s ability to pay.

Can penalties be abated?

Yes, under certain circumstances, the IRS will abate or reduce penalties. A professional from Clean Slate Tax can help negotiate penalty abatement.