What You Have To Know About Installment Agreements
An installment agreement is possible the best method to settle the IRS issue of tax debt. You’re qualified for an installment agreement if you’re updated with your tax returns, including the past due ones.
An installment agreement enables you to make monthly payments to the IRS with the remainder of your tax debt cancelled, meaning you do not have to settle the debt in full.
A debt of more than $25,000 will require negotiation with the IRS, but an installment agreement plan for 60 months is standard for anything less than that.
You must find out just how much you need to pay in unpaid taxes. Request the information from the IRS if you do not have copies of your tax returns. Note that the amount you owe has to include the penalties and interest that’s been accruing.
To request for an installment agreement, forms 9465 (Installment Agreement Request) and 433-A (Collection Information Statement) should be accomplished. Attach a letter requesting for an installment agreement and three months’ worth of documents showing income and expenses. Figuring out how much you can afford as monthly payment and preparing the documents is made easy with the assistance of a qualified IRS Problem Resolution professional. It takes about 30 days for the IRS to respond.
Be aware that interest and penalties continue to accumulate while you are settling your debt with an installment agreement plan.
After you’ve received the go signal from the IRS, make it a priority to send payments each month. Payment methods will be to pay by check, money order, credit card, EFTPS (Electronic Federal Tax Payment System), or automatic withdrawals. The electronic and automatic methods are recommended because there is a chance that the IRS might lose checks or money order.
Contact our firm if you have IRS issues. We can help you settle your back taxes with an installment agreement and assist you in IRS negotiations.
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