Pay Tax Debt in Monthly Payments
For taxpayers who cannot resolve their tax debt immediately, an Installment Agreement can be a reasonable payment option. An Installment Agreement is a common method used to solve back tax problems as it allows payment of your tax debt in smaller, more manageable amounts. The Agreement generally provides for equal monthly payments that will result in full payment of the tax you owe within a prescribed period of time. If you cannot pay your tax in full by the end of the collection period, but can pay some of the tax you owe, you may qualify for a partial payment installment agreement. To be eligible for an installment agreement, you must file all required tax returns.
The IRS cannot take enforced collection action, including the levy of bank accounts or wages, while your request for an Installment Agreement is under consideration, while it is in effect, and for thirty days after your request has been denied, or for any period while an appeal of the denial is being reviewed by the IRS. However, during the course of an Installment Agreement, interest and penalties continue to accrue. Depending on the amount of the tax liability outstanding, the IRS may file a tax lien until the liability is paid in full.
Get the Best Possible Payment Plan
The IRS has established guidelines to determine the payment amount and time frame for Installment Agreements. Depending on the amount of taxes you owe, the IRS may require you to provide full financial disclosure of your assets, income and expenses. This information is used by the IRS to determine the monthly amount they believe you are capable of paying and over what period of time. If the determination is not within your budget, and you accept the payment plan, you will most likely default on the Agreement which will result in the IRS commencing collection activities against you. Therefore, it is important that you have an experienced tax representative negotiate an Installment Agreement that provides you with a payment plan that is affordable and fits your individual needs. At East Coast Tax Consulting Group our goal is to get you the best possible payment plan.
Call us today for help with your Installment Agreement
With over 30 years of experience, our tax professionals are here to help you obtain relief from your tax problems. If you would like us to negotiate an installment agreement with the IRS and put a stop to collections, call us to schedule a free consultation today! Proudly serving Boca Raton, Florida and elsewhere throughout the U.S.