Installment Agreements are payment plans between the IRS and eligible taxpayers that allow them to pay their outstanding taxes through a series of monthly payments over an agreed upon term. For any taxpayer unable to pay their taxes in full by the due date of their tax return, or those with delinquent taxes due on previously filed returns, the installment agreement is a great alternative to get their tax accounts to a ‘current’ status, and avoid the risk of tax lien filings and levy action. During the term of the installment agreement, the interest the IRS assesses on the outstanding tax debt is reduced by half! This means that in addition to keeping other forms of tax collection at bay, entering into an installment agreement can actually save taxpayers some money during the time it takes them to pay off their tax debt.
Under the IRS Fresh Start Initiative, there is a streamlined installment agreement, so-called because it does not require the detailed financial disclosures previously required with requests for installment agreements, and it increases the maximum term over which installment payments can be made to 72 months, and the maximum tax debt eligible for payment in installments to $50,000. To be eligible for a Fresh Start installment agreement, the taxpayer must be compliant with their tax filings for the most recent tax years, and have sufficient time remaining in the collections statute.
For taxpayers presently dealing with IRS notices of Federal Tax Lien, Intent to Levy, or Seizure and Sale actions, an installment agreement is often times an integral part of the strategy to stay these forcible collection acts by the IRS, and get the taxpayer relief from their federal tax problems escalating.
As an IRS licensed Enrolled Agent, I know the ins and outs of IRS collections procedures and processes, and can negotiate the best deal to resolve your tax problems. The risks are too great to go it alone.
Call today for your free, no obligation consultation.