April 8, 2021 by eklose
This article is an accompanying piece of my latest article entitled Owe the IRS 50,000 or Less? Do you want a payment agreement? Try it yourself. In the IRS article, I wrote about the new “Fresh Start” initiative to enter into a phased payment agreement with the IRS if the taxpayer owed $50,000 or less. You don`t need a CPA or a lawyer to negotiate a payment agreement. You can do this yourself by calling an IRS tax number. If you request a payment plan (contract to temper), your application can take up to 90 days to be processed. As a general rule, you have up to 3 to 5 years to pay off your balance. You may be eligible if the amount owed is less than $25,000, if the phased payment period does not exceed 60 months and if you have submitted all income tax returns. Companies that are indebted to FTB can also make a staggered payment contract over the phone, but it is more complicated and more documents are needed. For more information, please visit the FTB website at www.ftb.ca.gov/online/installments_bus.shtml.
The FTB also has a unique feature that is not available with IRS temperature chords. The function is called “jumping the month.” If, for any reason, you cannot make your payment staggered as part of your agreement, you can call FTB and therefore inform it in advance of the due date of your payment. With FTB, you can spend a month without declaring your payment contract as a delay. The call number is (916) 845-0494. You can`t pay your tax bill and want to receive a payment plan? You can ask for a missed tempe agreement. Most people owe about three times as much to the IRS as they do to the FTB. Although the IRS limits are $50,000 or less, most people who owe up to $25,000 to the FTB owe the IRS more than $50,000. This means that FTB`s limit values are actually more generous than those of the IRS. With the IRS, you can pay up to 72 months, but with the FTB is the maximum time for a 60 month agreement. If you pay your taxes by a catch-up period agreement, all future government and federal tax refunds will be applied to your balance until it is fully refunded. You are not eligible for this program if your account is currently subject to a hold, continuous order to hold order or a tax profit withholding order. If the California Franchise Tax Board rejects your request for a temperable contract, it will send you a notice with the reason for the refusal.
If you feel the refusal is inappropriate, you or your tax representative can call or write to the FTB to explain why. As a general rule, the FTB should not take your assets for 30 days after a temperature agreement is refused and during the review of that refusal if you request a review within 30 days of the refusal.