The IRS recognizes that some taxpayers just need a little time in order to resolve their tax debt. The IRS installment agreement is designed to help you pay down the amount you owe over a period of 10 years or less. It is one of the most popular forms of assistance the IRS offers taxpayers, and you can even set it up as an automatic monthly debit payment. We can help you.
Installment agreements will also combine amounts owed from multiple tax years so that you have only one tax payment due each month. The downside is that penalties and interest continue to accrue on your debt during your payment plan, so you will end up paying more in total than you would by settling the debt sooner and in full.
You do have the option to pay down your debt more quickly, however, and when making payments you can choose the tax year to which they will be applied. For instance, you can direct your payment be credited to a tax year for which you owe more rather than one for which you owe less if you like, saving money on interest or penalties over time.
An IRS representative will determine your monthly payment amount based on the total of taxes, interest, and penalties owed. It will also be based on the amount you need to pay to resolve the debt within a reasonable amount of time, generally 10 years. Representatives may also be able to adjust the payment amount if it’s too high for your current income.
If you still can’t afford the payment amount after working with an IRS representative, you can also appeal the decision and ask for a review of your specific circumstances.
Let our attorney at the J. Gannon Helstowski Law Firm assist you in deciding what is the best option for you. We can represent you against the IRS so you do not have to deal with them directly.
What can I do if the IRS has already frozen my bank account due to my tax debt?
If the IRS has already taken action against one or more of your accounts, it’s important to understand that the levies will not be removed until you begin working with the IRS to resolve your tax debt. Enrolling in an installment plan agreement or simply paying the taxes owed is the quickest way to get the levy on your account released. You may also provide proof of financial hardship if you cannot currently pay anything towards your tax debt
Because banks are required to hold levied funds for 21 days before turning them over to the IRS, acting quickly to get some form of tax resolution plan in place will help your bank speed the process of getting your funds returned to you. Our tax experts are skilled in negotiating the kind of tax resolution plan designed to satisfy IRS requirements and put your money back where it belongs – under your control.
What kind of installment agreements are available with the IRS?
Setting up an installment agreement is probably the simplest way to manage your tax debt and get it paid off. The IRS offers several different types of agreements to fit taxpayer needs, and payments can run up to 10 years. Taxpayers who owe less than $25,000 may qualify for a streamlined installment agreement, in which you pay down the debt over a five-year period. If you owe less than $50,000, the Fresh Start Initiative allows you to extend payments to six years. Partial and full-payment plans are also available to taxpayers who do not qualify for other programs and are based on a financial statement and information submitted by the taxpayer.
Do you offer a free consultation?
Yes, we offer a free consultation. Keep in mind a consultation is the assess your current situation and agree upon a fee arrangement. We may not be able to give you a legal opinion until more research is done given your situation. Sometimes it may be necessary to charge a research fee or analysis fee to give you a complete plan of action and legal opinion. We strive to keep this fee as reasonable as possible.
How much do your tax resolution cost?
We provide the initial consultation free of charge, so we can learn about any tax issues you may have and design a tax resolution plan to meet your needs. We offer many services for a flat fee, and also give you the option of paying over time. We’ll do our best to work with you regardless of your financial situation.