If you are unable to pay the full amount of your tax bill on time, you don’t have to succumb to further trouble. Making installment payments is a cost-effective way to pay back what you owe without accruing additional fees and penalties. Every tax problem has a solution, and the Law Office of David J. Harris is here to help you solve your issues in the best way possible.
We will complete a review of your financial and tax information to determine the best strategy for you to pay back your tax debt. One option to comply with the law and avoid further repercussions is making installment payments. Our tax attorney knows when and how to negotiate full and partial installment payments.
What Are Installment Agreements?
IRS installment agreements are arrangements where a taxpayer is allowed to pay back their tax debt in designated monthly payments. When an installment agreement is established, the IRS will not take any further collection action against you until your debt is paid. Penalties and interest will continue to accrue until the full balance is paid.
Attorney David J. Harris has over 35 years of experience. He will help determine if you’re eligible to begin an installment agreement. A monthly payment plan can be the easiest way to pay off your taxes, and we are dedicated to helping you find the best plan for your needs. To request an installment agreement, you must first submit Form 9465. Then, you can determine if a full or partial installment payment plan best suits your needs.
Full Installment Payments
If you owe $10,000 or less and have filed all required tax returns, the IRS will automatically agree to an installment plan. Your amount due will be divided by 36 months, and you can, of course, pay more if you wish to pay the balance back in less time. When you’re approved for this guaranteed installment agreement, the IRS will not require you to submit financial information for approval and will not file a federal tax levy or lien against you for what you owe.
If you don’t meet the criteria for a “Guaranteed Installment Agreement,” you may still qualify for a variety of other payment plans depending on whether you have filed all required tax returns and owe below $25,000.00 (“Streamline Installment Agreement”), between $25,000.00 and $49,999.00 (“Fresh Start Installment Agreement”), between $50,000.00 and $249,999.00 (“Standard Installment Agreement”) or $250,000.00 or more (“Direct Negotiated Installment Plan”).
Partial Installment Payments
If you owe over $10,000, you may be eligible for a partial installment plan. To request a partial payment installment agreement, you must file Form 433 with Form 9465. The IRS then determines what your monthly payment may be based on what you can afford after essential living expenses are taken care of.
A partial installment payment plan often has a longer repayment term. Still, the IRS may file a federal tax lien to protect interests. You may also be required to sell any assets to pay your tax bill, rather than enter a partial payment agreement. Every two years, the terms of the agreement will be reviewed. The benefit of this type of plan is that you pay what you can afford until the statute of limitations period expires when the balance that remains owing is discharged.
How David J. Harris Can Help
If you find yourself unable to pay your tax debt in full, monthly payment plans may be your best option. A tax attorney can help you navigate the process of applying for an agreement to ensure you have the best and most affordable plan for your needs. Contact the Law Office of David J. Harris today to learn how you can improve your financial situation and alleviate the stress caused by overdue taxes.