Installment Agreement:
An Installment agreement allows you to pay your full debt in smaller, more manageable amounts. Installment agreements generally require equal monthly payments. The amount of your installment payments and the number you make will be based on the amount you owe and your ability to pay that amount within the time the IRS can legally collect payment from you.
You should be aware, however, that an installment agreement is
more costly than paying all the taxes you owe now. As with most revolving credit arrangements, the IRS charges interest and penalties on the unpaid portion of the debt.
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Another cost associated with an installment agreement is a user fee.
This is a one-time fee (currently $52 for direct debit agreements and
$105 for non-direct debit agreements) the IRS charges to set up the
agreement. For eligible low-income individuals, the fee for entering new
agreements will remain $43. If you don't meet the terms of the
agreement throughout the life of the agreement, the IRS can charge an
additional fee of $45, regardless of income level, to reinstate it
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Even if you set up an installment agreement, the IRS may still file a
Notice of Federal Tax Lien to secure the government's interest until
you make your final payment. However, the IRS can't take any collection
actions affecting your property while they consider your request for an
installment agreement, while your agreement is in effect, for 30 days
after the IRS rejects your request for an agreement or for any period
while you appeal the rejection.
At The Tax Law Practice, LLC, we will be happy to assist you in entering
into an installment agreement with the IRS. We will analyze your case
and let you know our estimated fees before we file any paperwork with
the IRS.
Please feel free to contact us to discuss your tax matter.