Do You Qualify For An IRS Installment Agreement?
You should file all back tax returns before applying for any payment agreement with the IRS. Filing all back tax returns is the first step in the process toward tax relief.
IRS Installment Agreements
An installment agreement will allow you to make monthly payments if you are financially unable to pay your tax debt in full. Without this installment agreement, the IRS may be able to levy your bank accounts and file a lien on your property. The important thing to remember about installment agreements is that one type of agreement does not work for every taxpayer.
Guaranteed Installment Agreement
The tax law requires the IRS to enter into an installment agreement with the taxpayer if they owe $10,000 or less and meet certain other qualifications. The installment agreement needs to provide full payment in three years.
$50,000 or Less Installment Agreement
If you owe $50,000 or less you can enter into an installment agreement with the IRS without providing financial information. The total tax liability must be fully paid within six years (72 months) or before the expiration of the collection statute of limitation, whichever comes first. The taxpayer must have filed all prior years tax returns before entering into the agreement.
$50,000 or More Installment Agreement
If your liability is greater than $50,000 the IRS will require you to submit complete financial information before approving your installment agreement. A planning move we take for our clients is paying the liability below $50,000 and then no financial information is required before the installment agreement is approved.
Partial Payment Installment Agreement
A Partial Payment Installment Agreement is available to taxpayers who have some ability to pay but cannot fully pay the liability prior to the expiration of the collection limitation period.
Contact Tax Help Advisors, LLC to find out if you qualify for an installment agreement. If you cannot pay all of your tax debt, we can negotiate a monthly payment plan for you. Do not attempt to negotiate with the IRS without professional representation.
Call us today at (704) 912-4002 to schedule your consultation.
If you cannot pay all of your tax debt, we can negotiate a monthly payment plan for you. Do not attempt to negotiate with the IRS without professional representation.