Installment Agreement - Pay Your IRS Debt Over Time.
One solution to stop harsh collection efforts by IRS agents is to enter into an installment agreement. An installment agreement will allow troubled tax payers to pay their tax debts over time. However it is not a sure thing, when applying for an installment agreement everything must be inline with IRS requirements.
The IRS does not have to agree to an installment agreement, nor do they have to agree to the amount of the installment agreement. There are 3 types of installment agreements: streamlined installment agreement, installment agreement, partial pay installment agreement. I will discuss all three agreements below.
A streamlined installment agreement is for individuals who owe $25,000 or less to the IRS and can afford to pay that amount over 60 months.
The next is your basic installment agreement. The IRS will require you to fill out a financial form (433A or F depending on whether or not you are self employed). Once you have done that you will submit it to them for review. Your installment agreement will be based on that financial form. Essentially your monthly income minus your monthly "allowable" expenses. Notice that I said "allowable" expenses. That does not mean that all expenses that you have every month will be considered allowable by the IRS. If possible, that is where pre-planning comes into consideration before the financial form is filled out.
Finally, the last installment agreement is called a partial pay installment agreement. The reason that it is called this, is because the IRS only has a certain amount of time to collect your taxes called the collection statute of limitations. If your statute of limitations is going to run out before the installment agreement will be paid in full, then you have a partial pay installment agreement. Unlike the streamlined installment agreement and the basic installment agreement, this installment agreement will not pay your taxes in full before the statute of limitation expires.
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 your free 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 IRS tax debt installment agreement could help you.