What You Need to Know About IRS Installment Agreements

When it comes time to pay outstanding back tax debts, there are many options available. Taxpayers often find themselves in a bind, unable to pay the balance in full.  A qualified tax attorney can tell you all you need to know about IRS Installment Agreements. Qualifying for an IRS Installment Agreement is one of many IRS tax relief programs a tax expert can help you pursue.

Installment Agreement

Are You Confused?

IRS Installment Agreements allow taxpayers to pay back the tax debt in smaller amounts. However, many taxpayers do not know where to begin when filing back taxes or attempting to qualify for an installment agreement.

You need the help of a tax professional to guide you through the process. They can determine if you need to file for an extension or if you may enter into a payment plan immediately. Your tax consultant will begin by:

  • Verifying with the IRS the amount of tax debt owing, including all penalties and fines
  • Determining the time frame required by the IRS to repay your debt
  • Establishing an affordable monthly payment amount, and
  • Stabilizing your status with the IRS.

It is imperative you and the IRS come to some type of agreement now to avoid escalating penalties and fines.

Each taxpayer's case is unique. Taking all factors into consideration, IRS Installment Agreements must be tailored to the individual's financial needs.  After carefully reviewing your finances and other important qualifying factors, your tax attorney will negotiate with the IRS to obtain a fair and affordable payment plan.

Be prepared to provide your tax professional with copies of previous tax returns, a complete accounting of finances, records of expenses, as well as personal information.

Having a Tax Professional on Your Side

Your tax professional will explain the different types of IRS Installment Agreements in full detail to help you understand your best solution. They will assist you in completing all required forms, obtain any missing information, communicate with the IRS, and enter into IRS negotiation on your behalf.

  • You will be educated regarding the responsibilities encountered and the "hidden" fees that can be associated with installment agreements.
  • You will know up front what your final tax debt liability will be. No more surprises!
  • You will not have to face any adverse tax collection proceedings once you make arrangements to pay back your outstanding tax debt.

A tax attorney can assist you in understanding and selecting the method by which you submit your monthly payments. Your options are:

  • Automatically debit your bank account
  • Mail your check
  • Deliver your payment to the IRS office
  • Request your employer to withhold the payment amount from your wages

Once a taxpayer enters into IRS Installment Agreements of any type, it is crucial that payments are made on time. Failure to comply can result in the IRS suspending your payment agreement and adding further penalties and fines.

You need the help of a qualified tax attorney to obtain a tax debt settlement you can afford.