Installment Plans
Taxpayers may be afforded the opportunity to repay the tax debbts over a period of time in the form of Installment Plans. These are used to repay any type of tax including payroll or employment taxes. It is important to file the most appropriate IRS forms to secure an installment plan from the IRS.
If you only need a few months to pay, contact us and we can help secure an extension for you.
There are 4 main types of installment plans: (1) Guaranteed Installment Agreements (2) Streamlined Installment Agreements (3) “Non-Streamlined” or Complex Installment Agreements and (4) Partial Payment Installment Agreement
1. Guaranteed Installment Agreements – when your tax debt meets certain criteria and your situation fits under certain circumstances, the IRS is required to permit you to repay your debt in installments. Some issues may prevent you from getting a Guaranteed IRS Installment Agreement. With the right Tax Attorney and the proper counseling, you can be assured that any issues that can be prevented, will be. With this route and your Tax Attorney, the IRS will also not pursue a federal tax lien against you, which would otherwise be reported to credit bureaus thereby negatively affecting your ability to obtain credit.
2. Streamlined Installment Agreements – this route is available to those whose debts exceed the maximum dollar amount threshold of the Guaranteed Installment Agreement. With this option and your Tax Lawyer’s assistance the IRS will not analyze your current financial situation, a federal tax lien may be avoided and you can repay your debt for a maximum of 60 months.
3. “Non-Streamlined” or Complex Installment Agreements – this Agreement is useful for those debtors who owe more than $25,000, cannot afford to pay off their full balance within 60 months (or the remainder of the collection statute)
4. Partial Payment Installment Agreement – this is a payment plan available to those who cannot afford to fully pay their debt within the longer of 60 months or the remainder of the collection statute. This is a favored option for the IRS as compared to an Offer in Compromise (OIC) because if your income increases, the IRS could require you to pay more money into your Agreement.
*** The collections statute is 10 years from the date of assessment. This time period can be extended based on a multiple of factors and events and can only be verified by researching the IRS transcripts. Your Tax Attorney will obtain your IRS transcripts and be able to evaluate your best option.
Other Options:
