Installment Agreements

Installment Agreements

Dealing with tax debts can be stressful, especially when dealing with the Internal Revenue Service (IRS). If you find yourself in a situation where you are unable to pay your tax liability in full, an IRS installment agreement can provide much-needed relief. An IRS installment agreement is a payment plan that allows the taxpayer to pay their tax debts in monthly installments rather than in a lump sum. It is an option for individuals and businesses who are unable to pay their entire tax liability at once. By entering into an installment agreement, taxpayers can spread their payments over time, making it more manageable for them to satisfy their tax obligations.

However, navigating the process and the complexities of tax laws and negotiating with the IRS can be overwhelming. A tax attorney can be an invaluable asset, offering expertise and guidance to ensure you secure the most favorable installment agreement possible. When you owe taxes to the IRS, there are various payment options available depending on the amount you owe and your financial situation. A tax attorney can help you understand different installment agreement options. They will analyze your financial situation and tax debt to recommend the best plan that suits your needs and maximize your chances of approval. 

Some payment plans that are for relatively small tax debts and that are paid in a short amount of time are often readily approved by the IRS, but more complex payment plan offers require detailed financial information. There are four essential types of IRS installment agreements, Guaranteed Installment Agreements, Streamlined Installment Agreements, Regular Installment Agreements, and Partial-Pay Agreements.

A Guaranteed Installment Agreement is typically available to taxpayers with a debt of $10,000 or less. There is a small fee to set up this plan, and it does not require extensive financial disclosures. A Streamlined Installment Agreement is designed for those with a debt between $10,001 and $50,000 to the IRS. This process involves a streamlined approval process and requires the production of straightforward financial documentation. 

A Regular Installment Agreement is not guaranteed, nor is it streamlined. This process requires the production of substantial documentation and disclosure of assets, liabilities, income, and expenses because the IRS wants to understand your ability to pay. A Partial Payment Installment Agreement is designed for taxpayers who cannot pay their full debt within the statute of limitations. This process requires full financial disclosure and, if approved, will result in you paying off less than the full debt. For this type of plan, the IRS will require detailed information about your inability to pay the full amount. In both these cases, a skilled tax attorney can help in gathering the financial information the IRS needs for its approval process.

Furthermore, negotiating with the IRS can be an intricate process, and having a skilled tax attorney by your side can significantly improve your chances of success. A tax attorney will communicate with the IRS on your behalf, presenting your financial situation and proposing an installment agreement that works for both parties. A seasoned tax attorney will use their knowledge of tax laws and experience in dealing with the IRS to advocate for a manageable payment plan that aligns with your financial capacity.

Filling out the necessary paperwork for an IRS installment agreement requires meticulous attention to detail. A tax attorney can ensure that all the required documents are accurately completed and submitted promptly and properly. Any errors or omissions in your application could lead to delays or rejections. With their expertise, a tax attorney will minimize the risk of mistakes, ensuring that the process runs smoothly.

In some situations, tax debts can be particularly complex, involving multiple liabilities, penalties, and interest accruals. A tax attorney is well-equipped to handle intricate cases and identify potential issues that could arise in the application process. They can provide tailored solutions to address specific tax situations, minimizing the impact of outstanding tax debts on your financial stability.

If the IRS rejects an installment agreement proposal, the IRS has an appeals process that is available to taxpayers. If a payment plan is rejected, you will receive a rejection notice explaining the reasons for the decision. Common reasons for rejection include incomplete or inaccurate information on the application, failure to meet specific eligibility criteria, or the IRS’s determination that your financial situation can support full payment of the tax debt. If your installment agreement has been, you do have the ability to appeal the rejection. A seasoned tax attorney will be able to guide you through the appeals process.

 Enlisting the services of a qualified tax attorney can provide you with the expertise, guidance, and advocacy you need to set up an installment plan with the IRS or appeal a rejection of an installment plan. The attorneys at Premier Legal Solutions bring a wealth of expertise, knowledge, and negotiation skills to the table in dealing with IRS installment plans. If you are in need of an installment agreement from the IRS, the team at Premier Legal Services, PLLC are here to help you seek a favorable resolution. Contact them at (267) 245-0649 or for a consultation.