IRS Installment Agreements

An IRS Installment Agreement allows a taxpayer to pay a pre-determined monthly amount to reduce, and ultimately eliminate, a tax liability. The advantage of an IRS Installment Agreement is that it permits the taxpayer to pay their debt over time, stopping enforced collection by the Internal Revenue Service, such as wage and bank garnishments. Unfortunately, unless a substantial amount is paid each month, debt reduction is slow, hampered by the enormous interest and penalties charged by the Internal Revenue Service and state collection departments.

Avoiding enforced collection activity by the IRS, such as wage levy, bank levy and/or seizure of assets, is of the utmost importance. It is important not to ignore an IRS notice that requests payment of the outstanding tax debt. If you are unable to make full payment through other means, our firm will contact the IRS to negotiate for the establishment of an IRS Installment Agreement. Our experienced professionals will prepare the necessary financial and collection information statements, and provide the IRS with information needed to determine the monthly payment required to reduce your outstanding tax liabilities. After the Installment Agreement has been established, you will receive a monthly statement showing your payments, the amount still owed, and the monthly amount due.

During the initial interview, our tax professionals assess each unique situation before recommending any course of action about an IRS Installment Agreement. Many professionals recommend only one solution, Offer in Compromise, without fully informing the taxpayer of their other options, however, our firm strongly believes that it is in the best interest of the client to make a well-informed decision with the help of highly trained tax professionals, well-versed in all of the options available.

For further information on IRS Installment Agreements call 1.800.777.3800 or contact TaxFirm.com to speak with one of our qualified professionals.