The IRS offers installment agreements when a taxpayer is willing to clear a tax debt but unable to pay a lump sum. This option will save you from tax liens and levies, but the sum of the unpaid tax plus interest and penalties works out to a bigger amount in an installment plan.
Would you like to learn more about an installment agreement? Are you currently facing any problems regarding your tax filing or tax return? Our taxation lawyers are here to help you during your crisis. Contact a taxation law attorney in your area as soon as possible for more information about installment agreements.
Listed below are a few things to keep in mind when considering asking the IRS for an installment payment plan:
A guaranteed agreement is available for those who have been filing returns and paying taxes regularly for the past 5 years and have less than $10,000 in unpaid taxes, not counting penalties or interest. A streamlined agreement is for those who have less than $25,000 to pay, including penalties and interest. A non-streamlined agreement is for those who have more than $25,000 to pay.
A partial plan allows you to enter into an agreement for part of the amount due. The IRS will have to review the case and will need more information if you have assets that can be sold to clear some of the tax debt. You will have to pay a setup fee for all these installment agreements. You can avoid the fee if you manage to pay the full amount within 120 days after setting up the agreement.
Do you have additional legal questions regarding an installment agreement? Our taxation law attorneys are here to help. Contact a taxation lawyer near you today to get the answers and information that you are seeking regarding tax installment agreements.
Did you know?
The IRS can terminate installment agreements if you miss a payment.
They can revoke the arrangement for many reasons. Meet at least the minimum required payment, and file your returns on time. If you miss a payment or fail to file a tax return, your installment agreement can be revoked.t.