Paying Back Tax Through Installment Agreements
Tax installment agreements provide for the full repayment of your tax debt in smaller and more manageable portions that are generally divided into equal monthly payments. If you do not qualify for an Offer In Compromise or Currently Not Collectable status but cannot resolve the entire tax debt in one payment, then an installment agreement may be the payment option you need.
The tax installment agreements are based on the amount of back taxes owed and your ability to pay that amount before the IRS cannot collect. Certain taxpayers may qualify for the partial payment installment agreement where smaller monthly payments are distributed so that the total you pay is actually less than the original amount owed.
If you are already have a tax installment agreement, you may still find a solution since the amount previously agreed can change if circumstances show your ability to pay has decreased. Your tax professional may have to complete certain statements on your behalf as further evidence of your changed financial position.
Important Points
 Compliance Required for Eligibility:
Have you filed all returns that are due?
Objective:
To show the IRS or State that you cannot pay your back taxes, and therefore another resolution is required.
Advantage:
No enforced collection takes place while the taxpayer is on the plan so long as the taxpayer does not default on the payments.
Disadvantage:
Interest and possibly penalties continue to accrue each year.
Contact Bentz Law Firm for a Free Consultation
For more information on Obtaining or Re-negotiating a Payment Plan and other debt relief options call the Bentz Law Firm today to schedule a free consultation online or call (312)641.2233, extension 269.
DISCLAIMER:This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
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