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Installment Agreements

In order to qualify for an Installment Agreement with the IRS, you must have filed all tax returns. It is perfectly fine to owe money still, but you must file. You also will need to disclose all of your assets owned. This includes all bank accounts, money markets, savings accounts or brokerage accounts. Also, you. must not have the ability to borrow the amount owed to the IRS from other sources such as a second mortgage. This also includes any equity in a retirement account from which you could liquidate; for example, IRA's or 401(k)s. Since every tax situation is unique, different Revenue Officers take different approaches. Contact our tax attorneys at Internal Tax Resolution today to get started!  We're here to help you get out of your back tax problem! 

Some Key Points For IRS Payment Plans 

  • File All Tax Returns First

  • Disclose All Assets

  • Must Complete a Personal Financial Statement

  • Monthly Payments Can Be Made Up to 5 Years

  • IRS Continues to Add Penalties & Interest During Monthly Payments Plans

  • Any Refund Due in a Future Year will Be Applied Directly to Amount Owed

  • Internal Tax Resolution Can Influence the Payment Terms (length & amount of payment)

Internal Revenue Code

According to the Internal Revenue Code taxpayers have the ability to pay their tax liabilities over time. The IRS is authorized to enter into a written (IA) Installment Agreement where the agreement will facilitate collection of the tax liability. An (IA) Installment Agreement is typically used where the taxpayer cannot pay his tax liability in a lump sum and has no equity in assets against which to borrow, but has sufficient income to pay the amount over time. If the taxpayer owes $25,000 or less and the amount of tax owed can be paid in less than five years, the taxpayer is allowed to make monthly payments even if he or she has sufficient assets to pay the taxes. Once the Installment Agreement has been entered into, the taxpayer must remain current for the agreement to remain in force. 

Give our one of our 43 local offices a call today to answer any questions you may have regarding a new Installment Agreement or existing one. Our tax consultants and tax attorneys are standing by to assist you with your tax liability. 

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