Installment Agreements Options

Having back taxes, tax penalties and interest can mount up. The IRS has different repayment options to choose from, but knowing which one is right for you can be difficult.

One option for repaying your tax debt is an Installment Agreement with the IRS. This agreement allows you to make monthly payments over a period of generally no more than 60 months to repay your tax debt.

Qualifying for an installment agreement with the IRS can be a long and complicated process, but with so much at stake, it’s important to know your options and your rights when dealing with the IRS.

You don’t have to take on the IRS alone. A local tax lawyer can work on your behalf and deal with the IRS and could make the filing process smoother. Fill out the free tax evaluation form below to connect with an attorney near you for a free consultation.

Installment Agreements Options

There are several different types of IRS Installment Agreements that taxpayers may be able to request and receive approval for, depending on their eligibility:

• Guaranteed Installment Agreements: you may qualify for this agreement if your tax debt is $10k or less, excluding interest and penalties, and you can repay it with three years.
• Streamlined Installment Agreements: you could qualify if you have $25k or less of tax debt, not including the interest and penalties, and the repayment period is up to 5 years.
• Financially Verified Installment Agreements: for this agreement you must have more than $25k in tax liabilities and would need to provide a full financial disclosure.
• Partial Payment Installment Agreements: These agreements are based a partial monthly amount of your tax debt that you set with the IRS.
• Direct Debit IRS Installment Agreements: to qualify for this agreement you need to set up automatic debits payments directly from your bank account.

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Taxpayers who owe less than $25,000 can apply for an Installment Agreement and may receive immediate approval to help them resolve their tax debt.

Taxpayers who owe more than $25,000 will have to negotiate an installment plan with the IRS.

IRS Installment Agreements do have additional fees, interest and penalties associated with them, and the longer it takes you to pay your tax debt, the more you end up paying in the end. For this reason, it’s important to know your options and act quickly when dealing with the IRS.

There are various requirements for installment agreements depending on how much your tax liability is. Speaking with a participating nearby tax lawyer who is familiar with the requirements can help you make the decision and get you on the right path financially.

Connect with a tax lawyer in your area today to learn how to protect your rights and what steps you can take to work out a solution to your tax debts. You can fill out our free case evaluation form and connect with an attorney near you today for a no-obligation consultation. Get started now.