What Is An IRS Installment Agreement?
If you can’t afford to pay your tax debt in full, the IRS may allow you to set up monthly payments. The IRS calls this payment plan an “Installment Agreement.” Although penalties and interest will continue to accrue, setting up a payment plan is a very attractive solution to tax debt. It can help get you back on a track, eventually becoming completely free of your tax debt.
How Long Does an Installment Agreement Last?
Under a standard IRS installment agreement, you will have to make payments until either (1) the tax debt is repaid in full or (2) the time period for collecting your tax debt expires. In certain cases, a skilled tax attorney can negotiate a “partial installment agreement” that lets you make minimal payments until the collections period expires, at which time the remaining balance is forgiven.
How Much Are the Monthly Payments?
The mount of your monthly payment will depend on your financial condition. The IRS generally wants you to pay as much as you can possibly afford, which means that your financial condition must be carefully presented to the IRS in order to get the lowest payment possible. With the introduction of new streamlined installment agreement programs, it’s now easier than ever to get an affordable monthly payment.
What Are the Benefits of Setting Up An Installment Agreement?
The most significant benefit of establishing an IRS installment agreement is that the IRS will cease taking any other collections actions against you. This means that they’ll you’ll be safe from all wage garnishments and bank account levies as long as you continue to make the required monthly payment. This breathing room can help you get back on your feet and come up with other ways to pay off your tax debt more quickly.
Do I Qualify For An Installment Agreement?
Probably. Most taxpayers will qualify for some kind of installment agreement, but we can’t be sure until we perform our own analysis of your financial condition. Schedule a free consultation and we’ll help you figure out the best options for dealing with your tax debt once and for all.