Can I Pay My Tax Debt To The IRS In Installments?
Installment Payment Of Taxes
Tax installment agreements allow you to pay taxes owed to the Internal Revenue Service monthly. Individuals and business taxpayers can qualify for installment payment plans.
Ability To Pay
Just because taxes are owed to the IRS, it does not mean that you will lose your house, have your wages garnished and your bank accounts levied. Your tax attorney can negotiate with the IRS to force them to work out some type of payment arrangements. The installment payment is based on the ability to pay – income versus expenses. Unfortunately, the IRS has tough guidelines for what expenses they will allow each month. Before you contact the IRS, you should engage a tax lawyer who understands what the IRS guidelines allow, to avoid those cases where an installment agreement is not practical.
What You Need To Do
- First, you must have all your tax returns filed. If returns are missing, the IRS cannot accept an installment agreement. If your returns are not prepared and filed, and your accountant will not prepare them, my office can prepare these returns.
- Second, you must be current. This means you must pay your most recent tax obligations in full.
- Finally, you need to complete a special IRS financial statement. This is called a Collection Information Statement. For individuals, IRS form 433A is used. For businesses, form 433B is required. I will help you complete these sophisticated documents to advocate for you.