Installment Agreement - Pay Your IRS Debt Over Time
Resolve Back Tax Debt With IRS Installment Agreement
Of all the various branches of the US government that people love to hate, the IRS is probably on the top of the list.
Nobody likes paying taxes or even spending the time it takes each year or each quarter to figure them up and deal with taxes, but they are simply a fact of life that we'll never be able to escape. And while most people manage to pay their taxes in a prompt manner, some of us aren't that lucky.
Building up IRS debt isn't something that many people do willingly. It's all too common to find yourself forced between paying taxes and paying other debts, and often it's easy to let tax debt build up without even realizing just what kind of serious situation it can bring with it.
No matter how or why tax debt has been built up, it's important that you deal with it as soon as you possibly can. Luckily, despite their sometimes deserved reputation as being ruthless when it comes to collecting the money they're owed, the IRS is often willing to work with those who are facing serious tax debt. It's not always possible, but in many instances there are various options available that may make it easier to overcome tax debt in a significant way.
One of the best options to consider is the use of an IRS installment agreement.
Essentially, an IRS installment agreement is exactly what it sounds like. It's a type of payment plan put in place by the IRS that allows those in tax debt to repay what they owe gradually over a period of time.
It is usually used by those who can't repay the full amount at once but who have the potential to fully repay their debt over time, and is one of the best options available for anyone in tax debt to consider. However, it's important to understand that the IRS isn't required to agree to an installment agreement, or to agree to specific terms put forth in an installment agreement request. Not everyone will qualify for this type of IRS tax debt relief.
There are a few different things to look at when learning more about an installment agreement. First, it's worth learning more about the different types of installment agreements out there.
Currently there are three types of installment agreements that are available:
• A Streamlined Installment Agreement
• A Basic Installment Agreement
• A Partial Pay Installment Agreement
Each of these types have a few similarities, but also have several differences that make each one better for specific individuals and their unique circumstances. As such, a closer look at each is warranted.
Streamlined installment agreement
A streamlined installment agreement is the easiest to qualify for. It's designed for those who owe less than 60,000 dollars and are able to repay the amount over a period of 60 months through regular payments.
Basic installment agreement
The basic installment agreement is a bit trickier and more involved. It requires the completion of form 433A or form 433F. These are financial forms that highlight your current financial situation. The IRS will use these forms to determine what your installment agreement terms will be. Usually, they look at monthly income and subtract your monthly allowable expenses. The result is the installment agreement amount. It's important to note that not all expenses are allowable, and as a result you may need to carefully consider your current financial situation when planning for the agreement.
Partial pay installment agreement
A partial pay installment agreement is only used when the statute of limitations on your taxes is about to expire. When this situation arises, the IRS will know that they can't receive the full amount through a normally set up installment agreement and will instead agree to receive a lesser amount over time. Obviously, this is a more difficult type of installment agreement to have approved, but is still one worth considering.
So with the basics understood, the next step is actually going through the process of setting up an installment agreement with the IRS. This is a fairly straightforward process in theory, but thanks to red tape, legal loopholes, and other factors involved, it can often be more complex than most people realize when they begin the process.
The first step is determining which of the types of installment agreements you are most likely to qualify for. Again, it seems fairly straightforward, but the IRS can often make it very complicated when actually applying for the installment agreement.
You'll also need to spend some time getting your finances in proper order. As mentioned above, one of the factors in determining what installment agreement terms will be put in place is the amount of allowable expenses you may have. Numerous things won't qualify for this, and as a result you need to take a close look at your income and expenses and prepare accordingly.
Next, you'll have to fill out IRS Form 9465. This is the official installment agreement request used to request the monthly payment. This form asks for various bits of information including your employer, your address, and various financial information. If you owe less than $50,000 there is a chance that an installment agreement can be set up online through the IRS website, though this isn't always the case.
After you've submitted the request, it will take some time for the IRS to process the request and either approve or deny it. Additional factors may come into play as well, including the terms and the amount of time you'll have to repay the full amount of tax debt.
Essentially, the type of installment agreement you're able to set up will be determined largely by the amount of back taxes you owe. If you owe less than $10,000 you'll be essentially guaranteed to qualify for a payment plan as long as you can repay the amount in 36 months or less. After that level, as the amount you owe, increases the challenges of securing your installment agreement will increase as well.
Getting the best results from your attempts to set up an IRS installment agreement is much easier when you utilize the help of a professional tax attorney.
Tax attorneys have the skills and the experience needed to help with each step of the process. They can help you determine which of the different types of installment agreements you will likely qualify for, help you understand what to expect from the process, and help ensure that you get the agreement you deserve whenever possible. In cases where higher amounts are owed, having professional representation on your side is often the only way to secure an installment agreement that you can afford. And if you don't qualify for an installment agreement, a professional attorney can help you figure out what options are available to you.
Mary King has concentrated in tax law since 1993 and continues to provide representation to clients throughout the Florida region. Unlike other tax attorneys, your case won't just be handed off to a paralegal. Mary King also has a track record of negotiating installment agreements, and other settlements as well as tax court. In short, she will stand up for your rights to ensure that you get the kind of help from tax debt that you need.
If you're facing back tax debt and aren't sure what options you have, contact us today.
As a local Sarasota Tax Attorney concentrating in IRS Problem Resolution, I can help you decide if an IRS Tax Debt Installment Agreement is the right solution to your IRS problem. Please call the Law Office of Mary E King for a consultation at 941.906.7585 or email Sarasota Tax attorney Mary King Esq. for your free IRS Tax help consultation and learn more about how an installment agreement could help you.