If you need assistance setting up an Installment Agreement, we can help. An installment agreement is an alternative payment option offered by the IRS – and most state tax agencies – that allows you to pay back the taxes you owe in monthly installments. Installment agreements are ideal for taxpayers who are unable to pay their taxes in full but are able to pay them over time.
The most attractive aspect of an installment agreement is that once you are entered into one, you are considered in good standing with the IRS (and with most states). In general, the IRS and most other tax agencies will not pursue you with harsh collection mechanisms – such as tax levies – once you have an installment agreement in place, with the exception being if you fail to make payments (called “default”). The downside to an installment agreement is that you will continue to accrue interest on your tax balance while you are paying it off, and you will pay a reduced failure to pay penalty (.25%) on the outstanding balance.
It is in your best interest to hire an experienced tax professional who can help determine the best repayment option for your unique financial situation while saving you the most money over the duration of the payment plan.
The level of difficulty involved in setting up an installment agreement is dependent upon the amount of money you owe in taxes and the amount of money you can afford to pay each month. Each taxpayer’s financial circumstances are unique and there are a different set of options available for each situation. A tax professional is able to thoroughly evaluate your individual financial and tax situation to determine the best plan of action for you.
In evaluating your financial and back tax situation, a tax professional will consider what you owe and how much you can afford to pay on a monthly basis after factoring in all of your necessary living expenses. After the analysis, you will be presented with a potential payment plan and, if you accept, you will be represented to the IRS through power of attorney, whereby all appropriate tax filings and dealings with the IRS for the resolution will be taken care of. You will receive updates on the status of your case throughout each step of the process.
Our partner tax team is comprised of tax professionals who have a variety of different backgrounds and areas of expertise, so you can rest easy knowing that you are in good hands. This diverse team approach allows your case to be reviewed from various angles while solving it in the most efficient and effective way possible. Our goal is to ensure you an affordable installment agreement – or another type of settlement method – if you are a good candidate. All in all, we want you to achieve tax resolution so that you can put your tax issues to rest.
Unfortunately, many taxpayers make the decision to set up an IRS payment plan without first considering all of the other options available to them. There is a good chance that a tax professional can save you a substantial amount of money in the long run by analyzing your financial situation and finding the best payment plan or settlement method for you. If you are unable to pay and do not act quickly, the IRS will begin to carry out collection actions against you, which will only exacerbate your already-troubled financial situation. Our partnered tax professionals will make all the appropriate tax filings accurately and completely to ensure their approval by the IRS. It is important to choose an experienced tax firm to represent you.
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