How to Create an IRS Installment Agreement?

Many taxpayers enjoy a tax return each year. But there are some who have to pay taxes. If you are in the latter camp, you may find it challenging to pay the total sum of your tax burden. 

If you are in danger of falling behind on your tax payments and have already missed your due date, consider a payment plan. Known as an IRS installment agreement , this payment plan option can give you the freedom you need to comfortably settle your tax debt. 

If you’re thinking about making an installment agreement with the IRS, there are a few important factors you need to consider, including:

1. Your ability to repay your debt by installments
2. Other debts that you may have
3. Your spending habits
4. Your income

With these factors in mind, your next step should be to contact an IRS installment agreement lawyer. Your attorney can help you decide whether you’re in a position to get on an installment agreement with the IRS. Moreover, your IRS installment agreement lawyer can help you choose which type of payment plan would best suit your needs. You can choose from four different types of installment agreements:

1. Non-Streamlined Installment Agreement
2. Partial Payment Installment Agreement
3. Streamlined Installment Agreement
4. Guaranteed Installment Agreement

One important thing to know about paying taxes with the IRS is that there are penalties and interest applied to unpaid taxes if they are not paid before a specified deadline. Completing your tax return on time will help you avoid these penalties and fees. 

At the Law Offices of Mary E. King, we want to help you avoid having to pay any more than what you already owe. Contact us today to discuss your tax situation so we can help you get out from under your tax debt. 

Let’s look at the repayment options the IRS has available so that you will know what each one offers and which one is right for you. 

Non-Streamlined Installment Agreement

To qualify for this installment agreement plan, you must meet the following requirements:

1. You agree to make minimum monthly payments as set by the IRS
2. Your tax debt is over $50,000

If you can meet these requirements, your attorney will help you initiate a Guaranteed Installment Agreement.

Partial Payment Installment Agreement

Have your IRS Installment Agreement lawyer assist you in completing Form 433-F. If approved, the IRS will accept partial payment of your tax debt. Please note, however, that the IRS will review your financial situation every two years. This can result in you paying more or the agreement being terminated.

Streamlined Installment Agreement

To qualify for a Streamlined Agreement, you must meet the following:

1. Your tax debt isn’t greater than $50,000.
2. You can pay your balance within six years
3. Your minimum accepted monthly repayment is more than $25

Your IRS Installment Agreement lawyer will help you determine if this payment plan is right for you. So be sure to provide complete information about your financial standing.

Guaranteed Installment Agreement

In order for you to qualify for this agreement option, you will first need to meet these conditions:

1. Your tax debt is under $10,000 (doesn’t include penalties and interest)
2. You don’t have any previous installment agreements over the last five years
3. You filed taxes and/or paid them within the last five years
4. You are unable to repay your tax debt by its due date
5. You are unable to repay your tax debt within 120 days
6. You agree to pay off your tax debt in full within 36 months
7. You agree to make minimum monthly payments as set by the IRS

If you can meet these requirements, your attorney will help you initiate a Guaranteed Installment Agreement.

As you can see, there are many options to consider when creating an IRS installment agreement. Your attorney will know what’s best and can help you make an informed decision. 

The IRS has many different methods that you can use to make your monthly payments. Once again, your IRS Installment Agreement lawyer can assist you in this area if you’re unsure which method works for you.

The good news is that nearly every repayment method is easy and straightforward. For instance, you can repay with a debit or credit card, check, money order, or payroll deduction. The IRS also has a handy portal online that makes it easy to submit your monthly payments.

When ready, we invite you to reach out to the Law Offices of Mary E. King to discuss your tax situation. In doing so, you will have an experienced IRS Installment Agreement lawyer in your corner to help you navigate your tax concerns.

Call IRS Installment Agreement Lawyer Mary King

To request the services of the Law Offices of Mary King or to discuss your tax needs, please fill out our contact form or call us directly at 941-906-7585.

The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.