If you are financially unable to pay your federal income tax debt immediately, the IRS will allow you to make monthly payments through an installment agreement. Although you may contact the IRS directly, speak with a tax attorney before contacting the IRS or other tax agencies. Paying your tax obligation in full when it is due will help you avoid penalties and interest to the IRS. If you are delinquent in your taxes, however, an experienced tax attorney can help you negotiate a payment plan – installment agreement as well as interest and penalty obligations on your behalf.
What Should You Do Before Applying for a Payment Plan or Installment Agreement?
- Make sure you filed all tax returns
- Look at other financial sources, such as a loan, to pay your tax debt in full
- Assess how large of monthly payment you can afford; and
- Understand that future tax refunds will be used towards your tax debt until it is paid off
What Does the IRS Charge to Set Up an Installment Agreement?
The IRS charges different amounts to set up an installment agreement, depending on whether the plan is paid with a debit card or payroll deduction and whether your income is below a certain level.
How Do I Apply for an Installment Agreement?
Although the IRS provides a few options for you to apply for an installment agreement, always seek legal advice from a Tax Attorney before contacting the IRS and agreeing to a payment plan – installment agreement. The IRS allows you to apply online if you owe $50,000 or less to them. In addition, you can call the IRS number provided on your notice or you can mail a completed form 9465. See Form 9465, Installment Agreement Request. If your tax liability exceeds $50,000, the IRS also requires you to complete Form 433-F, Collection Information Statement. However, you should consult with a Tax Attorney before communicating with the IRS regarding an installment agreement or payment plan, since the Tax Lawyer can help you negotiate a payment plan as well as any late fees and penalties.
How Do I Keep My Payment Plan – Installment Agreement In Good Standing?
There are several things you can do to keep your payment plan – installment agreement in good standing:
- Pay your minimum monthly payment on time
- Provide your detailed information with each payment, including your name, SSN, phone number, and tax year.
- File your tax returns on time
- Pay your taxes on time and in full
- Make scheduled payments even when you receive a refund.
Why Use PEARSON BUTLER Law for Your Installment Agreement?
PEARSON BUTLER Law has Tax Lawyers who are experienced negotiating with the IRS and other tax agencies with Payments Plans – Installment Agreements. In addition, PEARSON BUTLER Law offers additional tax services:
- Tax Court Litigation
- IRS Appeals
- IRS Audits
- Criminal Tax Defense
- Payroll Taxes
- Trust Account Taxes
- Offer in Compromise
- IRS Collections
- Installment Agreements
- Innocent Spouse Relief
- Offshore Voluntary Disclosure and Foreign Bank Accounts
- State Sales Tax Audits
- Tax Planning
- Nonprofit taxation and compliance
Contact a Installment Agreements Tax Attorney Today
If you would like more tax information on Installment Agreements, contact a tax attorney at PEARSON BUTLER Law now. Call (801) 495-4104 for a free initial consultation.