You are just about to file your income tax returns. However, you discovered that you might not be able to pay the taxes due. Reason A: you owed more than you can pay. Reason B: You just completed your return. Fortunately, the IRS allows taxpayers to negotiate repayment terms on what you owe them. At Tax Defense Partners, we specialize in tax debt relief solutions such as installment agreement. We can help you settle your back-tax bill for a payment that you can afford.
UNDERSTANDING INSTALLMENT AGREEMENT
An installment agreement is an arrangement granted by the IRS. It indicates that the taxpayer can pay his or her outstanding taxes in equal monthly installments over an extended period of time. Do note that interest is applied to the balance owed.
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Next, the IRS automatically agrees to an installment plan if the individual owes $10,000 or less, as of 2017. In addition, you must meet all the following criteria:
- You agree to pay and file on time in future tax years
- You did not apply for other installment agreements in the past five years
- You guarantee that you will off your balance in 36 months or less
- You have filed all your tax returns
- No late filings in the previous five years
ARE THERE OTHER WAYS TO QUALIFY FOR AN INSTALLMENT AGREEMENT?
The IRS is careful about accepting these proposals. They require documented and reasonable proof before approving your case. Your ability to pay and financial circumstances will be assessed. If you did not meet the initial criteria that were mentioned above, you will need to make a well-supported case that:
- The IRS did collect the total tax bill from you. However, it was unfair under your circumstances and you are facing economic hardship; or,
- The chances of paying the total tax bill are slim, especially after paying reasonable living expenses; or,
- You did not owe the tax in the first place
WHY SHOULD YOU CONSIDER INSTALLMENT AGREEMENT?
Installement agreement plans are more favorable than an asset seizure, bank levy, or wage garnishment. It allows you to pay off your tax liability over a period of time, not in a lump sum which can set you back pretty good. What’s more, the IRS will not conduct any collection activities during the installment agreement process. However, your agreement can go into default if you miss one payment or fail to pay the liability from future tax returns.
A major benefit of installment agreements is that the IRS will not file a tax lien against you for outstanding taxes due.
CHOOSE TAX DEFENSE PARTNERS FOR INSTALLMENT AGREEMENT SERVICES
Our tax debt resolution experts understand the economic parameters utilized by the IRS to measure the validity of your case. Our dedicated team can help you develop and present the evidence that will prove your case, on your behalf. We make sure that everything is done right from the get-go. This way, you end up being in the 25% that the IRS’s accepted cases. Even with installment agreements in place, Tax Defense Partners has consistently lowered our clients’ monthly repayments through statute of limitations on tax liability, penalty abatement, filing delinquent tax returns, and more.
If you would like us to negotiate an installment agreement with the IRS and put a stop to collections, do not hesitate to schedule a free confidential consultation with us today!