Orlando IRS Installment Agreement Attorney
If you owe money to the IRS and cannot pay the full amount of your tax bill by the due date, you must look at alternative arrangements. Otherwise, you may end up with additional penalties, late fees, and possibly severe actions like a bank levy or a lien. One possible option to resolve your tax bill is to set up installment payments. This process is something an Orlando IRS installment agreement attorney can assist you with. At the law office of Ronald Cutler, P.A., we have over 50 years of experience helping Orlando clients with all their IRS and tax needs.
What You Need to Know About IRS Installment Agreements
An installment agreement helps you satisfy your tax debt and accrued penalties and interest through monthly payments rather than one large payment. Once the IRS has agreed to an installment plan, they must stop enforcing other collection activities, like placing liens on your property or pursuing bank account levies or wage garnishments. Provided you maintain your monthly payments and don’t fall behind on new required filings, the IRS is prohibited from re-starting enforced collection activities.
When deciding whether an Installment Agreement is right for you, remember that penalties and interest on the original amount may still accrue during the repayment period. Your Orlando IRS Installment Agreement attorney can help you determine whether this type of payment plan is best for your situation.
Frequently Asked Questions About IRS Installment Agreements
Understandably, we receive a lot of questions from prospective clients who are interested in trying to set up an IRS installment agreement. Some of these questions include:
How Long Does an Installment Agreement Last?
Typically, under an approved payment plan, you may have up to 72 months, which is six years, to pay off your current tax liability.
What Are the Required Monthly Payments on an IRS Installment Agreement?
The IRS has its own guidelines on what they expect you to pay each month to pay off your debt. In some cases, it will be a portion of your disposable income, while in other cases, it might be all of your disposable income. Disposable income refers to what you have leftover each month after paying necessary living expenses.
What Happens If I Can’t Afford Monthly Payments After Deducting Living Expenses?
In these situations, an Installment Agreement might not be the right option for you. However, there may be other options available. When you meet with us, we can discuss some possible alternatives, like placing you in Currently Not Collectibles status.
Would There Be a Reason Not to Negotiate an Installment Agreement?
For some situations, Installment Agreements won’t be the recommended option. Even while you are on an Installment Agreement, there will be interest and penalties accruing on the original amount. If these are significant amounts and you could potentially make a lump sum payment, we may be able to look into other solutions like an Offer in Compromise.
Contact an Orlando IRS and Tax Attorney Today
If you need assistance with resolving an outstanding tax debt with the IRS, negotiating an Installment Agreement might be the right option for you. Contact the law office of Ronald Cutler, P.A. today to schedule an initial consultation.