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IRS Installment Plans
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If you owe money to the IRS and are wondering how you are going to repay your tax debt, the IRS has provided a way to help you repay your debts through a repayment plan. The IRS will hold you liable for paying your tax debts in full to the best of your earning ability. However, the IRS knows that very few people can afford to repay their tax debts in a lump sum.

IRS Installment Plan

The most common financial assistance the IRS offers taxpayers is an installment plan, where you pay your tax debts at a reduced monthly cost over a specified period of time. The IRS installment plan will allow you to repay your debts as quickly as possible through a payment that you can afford.

If you owe the IRS $25,000 or less you can request an installment plan that may allow you to space out your payments over a period of three years. If you owe over $25,000, and will need more than three years to repay your debts, the IRS may still grant an installment plan. You will required to fill out a Collection Information Statement Form 433-A, which is used to determine the amount you can pay in your installments.

It is important to remember that the IRS holds the power when approving installment plans, or offer in compromise offers. There is no set payment amount in installment plans and the amount you will be required to pay in your installment is at the sole discretion of the IRS.

Requesting An Installment Plan

There are a few ways you can maximize your chances of having your request for an installment plan accepted by the IRS.

Strong offer—your offer should include the maximum amount you can afford to pay once you have deducted what is required for your essential living expenses (house, food, gas, utilities, etc)

First payment—include a first installment payment with your request, this demonstrates good faith on your part and gives the IRS an idea of what you can afford to pay

Automatic debit—send in the banking information needed for an automatic withdrawal of your payments with your request, this demonstrates your intention of making timely payments

Legal Representation—having a lawyer on your side can maximize the chances of successfully negotiating an installment plan with the IRS; their expertise can help you obtain the best deal possible.

If you need to repay your tax debts and want to request an installment plan, contact us today to get the process started. We can evaluate your financial situation and help you obtain a repayment plan you can afford. Get out from under your tax debts and get back to living your life!!