IRS Installment Plans
If you have assets and or a large enough income to pay the tax debt balance or a significant portion of it, but cannot pay it right away, an installment agreement may very well be the best choice for you. An installment agreement is one of the most common ways for taxpayers to arrange payment for tax debt. Installment agreements are typically easier to obtain when the balance is under $25,000, but are far harder when the amounts are higher than that. It is highly suggest that you hire a tax relief professional in order to negotiate the best payment plan for that will fit your needs.
Types of Installment Agreements
There are a few different types of installment agreements that allow you to pay the IRS or State tax debt in monthly payments if you do not have the ability to pay in full.
1-Guaranteed Installment Agreement: This is the simplest installment agreement, and is designed for people that owe $10,000 or less in tax debt.
2- Streamlined Installment Agreement: Designed for taxpayers with tax debt up to $50,000. It is called streamlines due to the fact that it does not require full financial disclosure.
3- Financially Verified Installment Agreement: This choice is for taxpayers that owe over $25,000 and cannot afford to make the monthly payment on a streamlined installment agreement.
4- Longer Term Installment Agreement: If you owe the IRS over $100,000 than a longer term installment agreement is required. Often times the IRS will stipulate that you sell of assets in order to make payments.
5- Partial Payment Installment Agreement: This is for taxpayers that do not have the ability to pay off their tax debt. If approved you will not need to pay off the full balance, and are allowed to make monthly payments.
6- Statute of Limitations: This requires full financial disclosures and is rarely accepted by the IRS.
7- In-Business Trust Fund Installment Agreement: This choice is for unpaid trust fund taxes, which equate to payroll taxes.