IRS Installment Agreement

Overwhelmed by tax debt? Try an IRS Installment Agreement

What is an IRS Installment Agreement ?

IRS Installment AgreementAN IRS Installment Agreement can enable a taxpayer to pay delinquent tax liabilities over time. For many taxpayers who owe back taxes or are overwhelmed with an insurmountable tax liability, paying what is owed all at once just isn’t in the cards. Establishing an IRS Installment Agreement can make paying off a pesky tax liability much more manageable.

IRS Collection Activities Cease when Installment Plan Accepted

The moment an IRS Installment Agreement is accepted, the IRS will cease all collection activities against the taxpayer. So long as the taxpayer remains current with all payment obligations and any future tax filings, the IRS will also cease the levy of bank accounts and wage garnishments.

Important Considerations for IRS Installment Agreements

If you are considering entering into an IRS Installment Agreement, there are some important considerations:

  • There is a $105 IRS set up-fee to for an IRS Installment Agreement.
  • Interest and penalties continue to accrue on the outstanding balance of the tax liability until the liability is paid in full. If the taxpayer has some sources to borrow funds, that might make for a significant savings. A second mortgage might be a simple alternative and any second mortgage interest will be tax deductible. Interest and penalties charged by the IRS are not tax deductible.
  • The IRS may file a federal tax lien to pressure the taxpayer’s compliance with the installment agreement. However, the IRS cannot execute upon the tax lien and levy upon any personal or real property you own so long as the IRS Installment Agreement is being reviewed, is actually in effect, or for 30-days after denial of the Installment Agreement. Finally, if a lien was filed, the IRS would not proceed with levy if you were denied an agreement and then begun the IRS appeal process.

Tax professionals can almost always negotiate better arrangements

A Tax Resolution Lawyer can almost always negotiate a better IRS Installment Payment Agreement, having more workable payments, than most individual taxpayers will be offered on their own. Most taxpayers, applying without legal representation, will find that the IRS will “demand” that you accept its calculated payment plan – if they agree to an installment plan at all. This is because the IRS desires to collect the full tax debt as rapidly as possible. Unfortunately, the IRS’s calculations for a payment plan are often completely unrealistic, leaving the taxpayer with little or no disposable income should the taxpayer accept their one-sided plan. Tax Resolution Lawyer Paul Staley can probably negotiate a far better arrangement so you can keep your family afloat while simultaneously paying off your tax debt.

If the IRS is demanding immediate full payment or, if the IRS has proposed an installment payment plan that is substantially higher than you can reasonably afford to pay, call attorney Paul Staley for help. An experienced tax attorney will be more likely to negotiate the lowest possible monthly payment with the IRS. Why? The IRS takes those with professional representation more seriously. We can also help you negotiate more realistic payment plans with state tax authorities to help our clients’ deal with their state tax liabilities.

Requirements for submitting an IRS Installment Agreement

The IRS requires that a taxpayer file all delinquent returns before or in concert with the submission of an application for a installment payment plan. Moreover, the taxpayer is required to remain current on future filing obligations. No need to stress out, should you have outstanding tax returns. We can quickly and affordably prepare and file all back tax returns necessary to bring you into compliance and enable you to qualify to submit an IRS installment agreement proposal or petition for other tax settlement alternatives.

Out of work? Facing an Illness?

We can petition the IRS to classify you as “Currently Not Collectible”

If your current life circumstances are such that you cannot take advantage of an IRS Installment Agreement on an Offer In Compromise where a significant percentage of the tax debt is often forgiven, because you have little or no income for a season and no cash for the OIC we can assist you in requesting that the IRS place your account in a “currently not collectible” status. If your circumstance are conveyed to the IRS whereby they are agreeable to classify you as “currently not collectible,” the IRS will discontinue enforcement action and release any bank or wage levies already in place.

Get some help —Make that call!

San Diego Tax Resolution Lawyer Paul Staley provides a no-obligation, confidential consultation and has appointments available for evenings and weekends. We accept all major credit cards and can make other payment arrangements so that we can help you get your tax problems straightened out without adding additional layers of financial burden on you and your family. To speak with Paul now, or to schedule a confidential free consultation call (619) 235-9645.