Need an IRS Installment Agreement? We Can Help.

Ignoring your tax debt is never a good idea. If you don’t devise a plan to pay back the IRS, they will take action to secure the debt. This may include tax levies and liens, as well as garnishing your wages. Thankfully, the IRS has several tax relief programs available to help you. One of these is an IRS installment agreement.

What is an IRS Installment Agreement?

An IRS installment agreement, also known as a payment plan, is an arrangement between you and the IRS to pay your tax debt off over time. The IRS determines the amount you must pay when they review your full financial situation, including total monthly income and expenses. Before you can apply for an IRS installment agreement, all of your tax returns must be filed. Approval is largely based on income, assets, and liabilities. If you apply and have unfiled tax returns, however, the application will be denied regardless of your financial situation.

Types of IRS Payment Plans

Depending on the amount of taxes you owe and your ability to pay, one or more of the following payment plans may be an option.

• Short-Term Payment Plan.

  This is essentially a payment extension. You will have up to 180 days to pay your tax debt in full. If you apply online, you must pay within 120 days. Those applying by mail, phone, or in-person can stretch payments over 180 days. There are no set-up fees with short-term payment plans.

• Long-Term Payment Plan.

  If you need extended time, a long-term payment plan allows you to pay off your balance over several months or years. Unlike short-term payment plans, set-up fees are required.

• IRS Streamlined Installment Agreement.

  If you owe less than $100,000, you may be able to get a 60-month payment plan, or longer, and be able to forgo the Collection Information Statement.

• Partial Payment Installment Agreement.

  If you owe $10,000 or more in taxes and the IRS does not believe that you will be able to pay in full before the collection statute expiration date (CSED), it may approve you for a partial payment installment agreement.

To ensure you select the best installment agreement for your financial situation, contact Tax Assistance Group. We’ll review the specifics of your case, help with unfiled tax returns, and work to get you the lowest monthly payment plan possible.