installment agreement relief can help resolve your tax debt problems.
Your financial situation is different from someone else. The tax debt relief service that works for someone may not be the best choice for someone else. You should take the time to understand all the debt relief options available to you to find the best solution for your needs and goals.
Installment Agreement Tax Debt Relief Guide Locator
What Is Installment Agreement Tax Relief
If you are unable to fully pay your tax burden, the Internal Revenue Service (IRS) allows taxpayers to pay off tax debt through an Installment Agreement (IA). The IA is a tax debt relief program where you can pay off your tax balance over time, but with stringent payment requirements. However, because interest and penalties will apply, the IRS encourages taxpayers to pay taxes immediately. Interest and penalties can equal 8% to 10% per year.
Types Of Installment Agreement Tax Relief
The IRS has four different types of Installment Agreements: guaranteed, streamlined, partial payment, and non-streamlined. Both guaranteed and streamlined IAs are full repayment plans, under $50,000 in tax debt, do not require detailed information of your income and assets, and the IRS does NOT file a federal tax lien against you. Payments are fixed monthly installments through Direct Debit. Your specific financial situation will determine which IRS tax payment plan you qualify for.
Guaranteed | Streamlined
What Else Should I Know?
The IRS has the right to review your account status for any reason at any time. Since you owe money to the IRS they have the right to determine if your financial situation has changed. Denying the IRS a request for a new collection information statement will increase their curiosity and should be avoided.
Partial Payment | Non-Streamlined
Thoughts On Installment Agreement
The Installment Agreement is a tax debt relief program where you can pay off your tax balance over time, but with stringent payment requirements.
The IRS can revoke an Installment Agreement under the following circumstances:
- The taxpayer misses a payment;
- The taxpayer does not file a tax return or pay taxes after the agreement is entered into;
- The taxpayer provided inaccurate information on Form 433-F; or
- The taxpayer is paying under a partial payment installment agreement and a review indicates a change in financial status.
Getting IRS approval for an non-streamlined IA is a challenging task. It is strongly recommended that you have professional advice and representation when dealing with the IRS.