What You Should Know About Installment Agreements

An installment agreement is probably the best option to settle the IRS problem of tax debt. If you are up-to-date with your tax returns, including the past due ones, you're qualified for an installment agreement.

An installment agreement enables you to make monthly payments to the IRS with the rest of your tax debt cancelled, meaning you do not need to settle the debt in full.

A debt of over $25,000 will require negotiation with the IRS, but an installment agreement plan for 60 months is standard for anything less than that.

Know precisely how much you need to pay, including accrued interests and penalties by requesting copies of your tax returns.

An experienced IRS Problem Resolution professional can help you in filling out Form 9465 (Installment Agreement Request) and help you determine how much you can afford to spare for the monthly payment. Another necessary form is the Collection Information Statement form (Form 433-A). Three months' worth of income and expenses documents will help you accomplish the form. You can then pen a letter requesting an installment agreement. Your checklist before mailing your request to the IRS must include the letter, 2 forms, and the needed documentation. You should get a reply in 30 days.

You have to be aware that while you're paying your debt with an installment plan, penalties and interest continue to accumulate.

When the installment agreement is approved by the IRS, you may pay by check, credit card, money order, Electronic Federal Tax Payment System (EFTPS), or automatic withdrawals. Make the payments your priority every month.

If you have IRS issues, contact our firm. We can give you IRS Help with any IRS problem, from settling your tax debts with an installment agreement to negotiating with the IRS.

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Originally posted 2007-12-09 04:13:08. Republished by Blog Post Promoter

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