If you are not able to pay the Internal Revenue Service immediately or within 120 days, you may qualify to pay the IRS through a monthly installment agreement. It is important that you follow all terms of your installment agreement, including making all payments timely, while remaining current and compliant with all current filings and payments. Penalties and interest will continue to accrue while paying off an installment agreement, so it is still in the best interest of the taxpayer to pay off any amount due in full as soon as possible. If you have questions or need help with an installment agreement, call us at 1-800-408-3122 or email us at email@example.com for a free consultation.
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.
Why You Should Consider Installment Agreement?
Installment 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.
Partial Pay Installment Agreement
Change existing installment agreement
Currently Not Collectible
If a taxpayer can show the IRS that they cannot afford to make any payments now, they may qualify for IRS to place the account in a currently not collectible status.