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Installment Agreement

Are you interested in setting up an installment agreement with the IRS? Our Firm has been negotiating installment agreements with the IRS for years.   To find how we can help you, call 1-800-880-0TAX.  

Why set up an installment agreement?

An Installment Agreement with the IRS allows taxpayers to repay their back taxes through monthly payments over a defined period of time.  If the Taxpayer successfully negotiates an installment agreement with the IRS, the IRS will suspend its collections efforts against the taxpayer. In other words, the IRS will refrain from harassing a taxpayer with threatening calls, letters, wage garnishments, and bank levies.

Are there requirements for setting up an Installment Agreement?

Before granting an installment agreement, the IRS generally requires taxpayers to be in compliance with at least six years of prior tax filings, complete a collection information statement, and provide other supporting documentation.   From a taxpayer’s perspective, it is extremely important to review the statute of limitations on collection to determine how much time the IRS has to collect a tax liability before the tax liability expires. An installment agreement may repay all or a part of the back tax liability depending on the statute of limitations and the taxpayer’s ability to pay.

How much will the monthly payment be?

The amount of the monthly payment depends on the facts and circumstances of each individual case.   The IRS generally compares a taxpayer’s monthly income to their monthly expenses to determine how much a taxpayer can afford to pay the IRS. It should be noted that the IRS often disregards a taxpayer’s actual monthly expenses and applies standardized living expenses to taxpayer’s situation. The standardized living expenses are commonly referred to as “National Standards.”   In most cases, the National Standards are much lower than a taxpayer’s actual monthly expenses.   If a taxpayer is not careful, it is very easy to end up monthly installment payment is that is much greater than they can actually afford. Taxpayers who are paying more than they can afford usually end up defaulting on the installment agreement, thereby, damaging their credibility with the IRS with respect to future negotiations. Defaulting on an installment agreement causes the IRS to resume collection action against a taxpayer.    

Why should you retain our Firm?

We strive to negotiate an installment agreement that is affordable for the taxpayer the first time. If negotiated properly, an installment agreement can be a great tool for resolving back taxes.  

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