Installment Agreements

Have you been hit with a big IRS tax bill this year? Perhaps you've fallen behind on your taxes and now cannot afford to pay the amount you owe the IRS. Since not paying your bill isn't an option, and you don't want to have to resort to extreme measures like bankruptcy, you will have to find another solution to your tax problem. Installment agreements might be just what you are looking for. However, the IRS won't offer just anyone an installment agreement, which is one reason you should speak with a professional from IRS Problem & Tax Lien Help Group before proceeding to speak with the IRS.

What are installment agreements?

In essence, installment agreements were formed in order to provide taxpayers who owe the IRS more money than they can pay all at once with a payback option. However, the IRS likes to make it known that installment agreements won't be offered to anyone who requests one because they prefer taxpayers to pay all they owe up front rather than in installments. But, as you may have experienced, repaying all you owe in taxes in one lump sum payment is simply not an option for all taxpayers.

Before you will even be considered eligible for installment agreements, you must have filed all of your taxes and be current with your tax returns. If you do qualify for an installment agreement, you will be expected to make equal monthly payments to the IRS, and the amount of money you will pay each month is based upon your income and how much you owe in taxes. And if, for example, you end up getting a return while still under an installment agreement, your return will be applied to the money you owe the IRS.

One thing many people forget to consider when contemplating the benefits of installment agreements is that interest keeps accumulating even when you have an installment agreement with the IRS. If you owe a lot of money to the IRS, the interest that adds up each month could be quite significant, which means that you could end up paying a lot more than just the taxes you owe to Uncle Sam. There is also a small fee that the IRS charges to set up an installment agreement account for you, if you've been deemed eligible.

Why you need an aggressive negotiator on your side
One of the factors about installment agreements that the IRS stresses strongly on its website is that you must make timely and regular payments. If you renege on payments, you will get into serious trouble with the IRS, something to be avoided at all costs. Remembering to make regular payments or remembering to have enough money in your account for the IRS to debit is crucial to your relationship with them.

If you think that installment agreements might be the most effective way for you to repay the money you owe in taxes, then it is a good idea to speak with a trained tax professional before you speak with an IRS representative. The IRS will invariably try to make your monthly payments as large as possible because that means they get their money faster. However, you still need money to pay regular bills, so it is important to establish the right amount for any installment agreements.

Contact a representative at IRS Problem & Tax Lien Help Group for advice and assistance in dealing with the IRS. We can negotiate an installment agreement that is right for you.

Contact us here for a free consultation and we will determine whether an Installment Agreement will work well in your situation.

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