Reasons to Consider an Installment Agreement with the IRS
For many individuals who are struggling with how they are going to pay off their significant tax debt, an installment agreement may be the perfect solution. The IRS recognizes that there are situations in which an individual may not be able to pay their tax debt in one lump sum. An installment agreement is a “payment plan” that allows you to spread out the financial burden and pay back your debt in monthly payments.
There are several reasons you might want to consider trying to negotiate an installment agreement with the IRS:
1. If you owe less than $10,000 and are in good standing with the IRS, then the IRS is required to agree to an installment agreement if you have not filed or paid taxes late in the last 5 years, you can pay the amount due off in 36 months and this is your first installment agreement. This is a much better option for you than getting behind in your taxes, accruing tax penalties/interest and suffering potential credit issues. For these “guaranteed installment agreements”, the IRS does not issue a federal tax lien, which could significantly (negatively) impact your long term credit.
2. If you owe $25,000 and can pay your debt in 72 months, the IRS will generally approve a streamlined installment agreement. As with the guaranteed installment agreement (described above) a tax lien is not required, protecting your credit. With this type of installment agreement, you must also stay current with filing your taxes.
3. If you are unable to afford your entire tax bill. There are many cases where individuals simply will never be able to pay the full amount due to the IRS, even if the payments are spread out over a period of months. In these cases, you may want to consider a partial payment installment agreement, in which you are only responsible for paying what you can afford. In order to process this request, the IRS will need certain personal and financial information to determine exactly how much you will be asked to pay and how long you will be given to pay that amount. In these cases, the IRS will likely file a tax lien to ensure that they can access your funds/property if you stop payment.
Success Tax Relief can help negotiate your installment agreement
Installment agreements can be complicated to negotiate and it is often wise to seek the help of an experienced tax firm to help make sure that you end up requesting the most appropriate and beneficial agreement for your unique tax situation. Success Tax Relief has helped thousands of customers successfully negotiate installment agreements and will work directly with the IRS on your behalf. We understand all of the necessary requirements and paperwork involved can help streamline this process so that you can breathe easy, knowing that you have a plan for paying your taxes.
Now is a great time to get started – call Success Tax Relief today at (877) 958-6638 and speak with one of our trained tax professionals. We can answer your initial questions and determine the best possible course of action for you. All you have to do is call!