What is an Installment Agreement?

One of the IRS Fresh Start Initiative resolutions is an Installment Agreement. These agreements are entered into by the IRS and the taxpayer who has successfully proven that they are unable to repay their current tax bill in full.

Installment Agreements allow a taxpayer to pay an agreed-upon monthly payment each month toward their tax balance. As long as the taxpayer stays current on their monthly payments, the IRS will not use aggressive collection activities such as levies and liens. Additionally, ‘failure-to-pay’ penalties will no longer be accrued on the balance.

Installment Agreements only last for a maximum of six years. If your tax liability is relatively small and monthly payment would be able to eliminate it over six years, an Installment Agreement may be the right resolution for you.

How do you qualify for an Installment Agreement?

To qualify for an Installment Agreement, you must first ensure that you are compliant with the IRS.

IRS compliancy is based on your current tax filing status. If you have unfiled tax returns, then you are not compliant with the IRS and you are not qualified for an Installment Agreement or any other type of IRS Fresh Start Initiative relief program.

If you need assistance with filing your taxes, please contact a TaxRise specialist at 833-419-RISE (7473)

Once you are up to date with your tax filings, you can submit IRS Form 9465 requesting an Installment Agreement for your current balance.

Can I Qualify for an Installment Agreement on my Own?

Yes, you are able to qualify for an Installment Agreement without professional representation. However, depending on your balance amount and finacial situation, you might be better served working with a professional.

Installment Agreements are often the simplest resolutions to achieve because it guarantees a monthly payment to the IRS. Based on the information the taxpayer provides, the IRS will calculate a monthly payment that they deem financially reasonable for the taxpayer to pay each month.

The IRS calculates this amount based on a number of different factors including the maximum expenses allowed for your specific zip code.

Maximum allowable expenses are not the same as a taxpayer’s actual expenses. So often, a taxpayer will enter into an agreement that they cannot afford long term.

Installment Agreements often come with terms that state that if a taxpayer defaults on their payment, the agreement will become null-and-void and immediate collection activity such as wage garnishments, levies, and liens will go into affect.

Why Work With TaxRise To Secure My Installment Agreement?

When you work with TaxRise to secure your Installment Agreement, our tax professionals will work to get you the lowest possible monthly payment.

TaxRise tax attorneys will also work with the IRS on your behalf to negotiate the best terms possible for your Installment Agreement.

Our team have reduced monthly payments by over 80%, removed tax liens, stopped wage garnishments and bank levies all through carefully crafted cases and strong negotiations.

Next Steps

If you’re interested to see if an Installment Agreement is right for you or if you would like to see if TaxRise can renegotiate your current Installment Agreement, give us a call at 833-419-RISE

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