IRS Payment Installments

installment agreement

Install­ment Agreement

If a tax­payer does not qual­ify under the Offer in Com­pro­mise pro­gram, one option avail­able is the Install­ment Agreement.

IRS allows tax­pay­ers who are finan­cially chal­lenged to pay their back taxes through monthly install­ments. If the tax lia­bil­ity is below $10,000, a tax­payer can talk to an IRS agent and request for an install­ment agree­ment. More than not, this request will be granted.

The Install­ment Agree­ment pro­gram gets com­pli­cated if the tax lia­bil­ity is higher. At a cer­tain level, the IRS will require the tax­payer to pro­vide finan­cial infor­ma­tion by com­plet­ing a finan­cial state­ment form to be sub­mit­ted to deter­mine the amount of the monthly install­ment before it approves the request. But many tax­pay­ers, if not most, are reluc­tant to share finan­cial infor­ma­tion to the IRS.

Under the Install­ment Agree­ment pro­gram, there is the “Stream­line Pro­gram” if the tax debt is $25,000 and below and there is the newly intro­duced “Fresh Start Pro­gram” which applies if tax lia­bil­ity is below $50,000. There are cer­tain cri­te­ria and guide­lines the IRS uses to deter­mine what your monthly install­ment will be and how long you have to pay it off.

The IRS is the most pow­er­ful col­lec­tion agency in the United States. They want their money within the short­est time pos­si­ble. This may cause finan­cial hard­ship as the install­ment pay­ments may be con­sid­er­ably more than what tax­pay­ers can han­dle usu­ally lead­ing to default and start­ing the dread­ful process all over again with more penal­ties and fees.

Our tax pro­fes­sion­als will ensure that you are granted the oppor­tu­nity to sub­mit your pre­ferred arrange­ments based on our analy­sis of your cur­rent situation.