IRS Installment Agreements
Owe the IRS money and not sure where to begin?
Don’t worry, we can help! The Lee Law Firm knows how to work with the IRS to help you resolve your tax debts without causing you any further stress. Dealing with the IRS can be stressful, which is why we are here to work for you! Let us negotiate with the IRS for you and help find you relief fast!
What are my options for dealing with the IRS?
The best option is to pay the debt in full, but the IRS offers a payment plans for those who cannot afford to pay the debt in one lump payment. When choosing the best option to repay tax debts, there are several things to consider. The ability to maintain a payment schedule, the amount of time needed to pay the tax debts and the potential for future finances to change should be evaluated when deciding between options.
Installment Payment Plan
One of the more popular methods for paying tax debts is through an installment payment plan. The IRS may approve a taxpayer to pay on an installment plan if they (1) owe less than $25,000 and (2) are current on filing their tax returns.
There are several types of installment agreements, each providing the taxpayer with an opportunity to pay their tax debts in payments over a specified time frame. Each type of installment plan is subject to interest fees.
- In a guaranteed installment agreement, the taxpayer pays their tax liabilities within 30 months. This type of installment agreement is used for those that (a) owe less than $10,000, (b) are current on the previous 5 years tax returns and (c) do not have any other installment agreements with the IRS.
- In a streamlined installment agreement, the taxpayer must pay their debts within 60 months. This type of installment agreement is used for those that (a) owe less than $25,000, (b) the taxes owed are not more than 5 years old,(c) are current on the previous 5 years tax returns and (d) do not have any other installment agreements with the IRS.
- A financially verified installment agreement, is similar to a streamlined installment agreement except must meet the additional criteria of (a) does not have sufficient money in savings or retirement accounts to pay off the taxes and (b) is unable to borrow the money from a financial institution to repay the debts.
For those who owe over $100,000 in tax liabilities, the IRS will allow a longer term payment agreement. In some cases, the IRS may sell off the taxpayers assets in efforts to satisfy a portion of the debt before they agree to an installment agreement.
Considering an IRS installment plan? We can help!
Our attorney want to be sure you have reviewed all of your tax debt relief options before choosing which plan is best for you. Because it is important to consider the affordability of an installment agreement, we want to see you succeed. Contact one of out attorneys today for a detailed review of your tax debt situation and get informed about all of your options. You can be on the track to financial freedom in no time!