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If you are unable to pay your tax liabilities in full, SafeGuard Tax can assist you in setting up an IRS installment agreement, allowing you to pay your tax debt gradually through monthly installments.
The IRS recognizes that it cannot collect money that isn’t available. By offering taxpayers the option to pay off back taxes over time, the agency helps individuals avoid financial hardship. Since the IRS collects interest on unpaid amounts, allowing payments in installments does not place an undue burden on the agency. This makes installment agreements a “win-win” solution for both the IRS and the taxpayer.
It’s important to remember that the IRS typically charges interest on the outstanding tax balance. However, payment plans are often a practical solution, especially if your tax bill is substantial or your budget is tight—similar to how monthly car payments are often more manageable than paying the full cost upfront.
For balances between $10,000 and $25,000, the IRS typically requires a minimum monthly payment based on dividing the balance by 72. The IRS is usually reasonable, and if a taxpayer cannot afford the proposed monthly payment, they have the option to appeal the decision.
Hiring a tax attorney or a qualified tax professional can be extremely beneficial. With a thorough understanding of IRS rules and regulations, a tax professional can help ensure you receive the best possible terms for your installment plan. Additionally, they will carefully review your case to see if there are other IRS tax relief programs that might provide even better financial outcomes than an installment agreement.
If you fail to communicate with the IRS, they may take collection actions against you, such as wage garnishment, bank levies, or property liens. Setting up an installment plan helps prevent these actions and keeps you in good standing with the IRS.
Typically, it takes four to six weeks to finalize an installment agreement and set up the payment method. The turnaround time may vary depending on the payment method you choose. For example, the process might take longer if you cannot pay via direct deposit or payroll deduction.
IRS payment plans can last up to six years, depending on the agreement and your specific situation.
Our team of tax attorneys and licensed professionals has helped countless clients resolve their tax issues through installment agreements and other IRS tax relief programs. We will advocate on your behalf to secure the best possible terms with the IRS, ensuring you can put your tax concerns behind you. For more information on installment agreements or other tax relief options, contact us today for a free consultation.
If you are considering an installment agreement, let our experts guide you through the processes. Give us a call at 866-123-4567 or submit your application below. Apply Now!