The Process of an IRS Installment Agreement

Many taxpayers find themselves in the terrifying situation of having to deal with the IRS due to an unpaid tax debt.  It does not matter if you owe less than $10,000 or up to $25,000. There is an IRS Installment Agreement designed to fit your situation. Your tax attorney can walk you through the process, explain the forms and help you finalize an IRS payment plan that will allow you settle your back tax debt.

Installment Agreement

How Can I Get Out of Debt?

An IRS Installment Agreement is a great IRS tax relief option for taxpayers who are unable to pay their back tax debt in one lump sum.

  • If your tax debt is less than $10,000, this tax settlement allows you to pay back your balance within 3 years.
  • If you owe over $10,000 and under $25,000, your tax professional can help you with the Streamlined Installment Agreement. This IRS payment plan is designed to allow you to repay your tax debt over a period of 60 months.
  • If you owe over $25,000 in back taxes, you need a tax specialist to negotiate a Partial-Payment Agreement.

Do Not Face the IRS Alone

When you owe outstanding tax debts, dealing with the IRS is confusing, intimidating and stressful. You need a knowledgeable tax attorney to determine you receive a fair and affordable IRS Installment Agreement. A qualified tax team will assist you with:

  • Verifying monthly "disposable income"
  • Listing all allowed living expenses
  • Preparing a Collection Information Statement (Form 433-A, 433-B, 433-F)

Only an experienced tax attorney can ensure accuracy in reporting your information and presenting your case to the IRS to secure a favorable outcome. Because of the aggressive and intimidating tactics used by the IRS, taxpayers are pressed into hastily accepting an IRS payment plan they cannot afford.

How Much Time Do I Have to Pay My Back Taxes?

After determining which IRS Installment Agreement will work best for you, you will have between 4 months and 10 years to pay off an outstanding tax debt. Full financial disclosure is important. The IRS may need you to sign an extension in lieu of the collection statute. Securing an IRS payment plan is dependent upon two things:

  • The amount you owe, and
  • How much you can afford to pay each month.

It is wise to have the help of a tax professional to enable you to clearly understand which IRS payment plan will be most beneficial to you in the long term. An experienced tax expert is your best advocate.

If you do not provide full disclosure of your tax information, you will hinder your tax professional from obtaining the best IRS Installment Agreement. If you enter into an agreement you cannot afford, you can incur a new tax liability along with additional penalties and interest. This will result in your current agreement being suspended beginning the downward financial spiral again.

Speak with a Tax Professional

It is important that you understand all the stipulations and guidelines when requesting an IRS Installment Agreement. If you make a mistake and are unsure of the forms and terminology, you can miss your window of opportunity. The tax laws and codes are constantly changing.  Delaying action leads only to increased penalties and fines, the possibility of a wage garnishment, or the loss of assets. Call a tax professional now to gain peace of mind and IRS tax relief.