Paying Off Tax Debt with an Installment Agreement
If you are unable to pay what you owe to the IRS, you have a few different options that can keep you from accruing unmanageable penalties and interest payments, or having your assets or wages seized by the government. Installment agreements, for instance, allow taxpayers to pay off their debts over time by making a series of monthly payments. There are, however, specific requirements with which applicants must comply before they can make use of the installment agreement option, so if you recently received a notice from the IRS indicating that you have an unpaid debt, you should speak with an experienced Florida IRS installment agreement attorney who can help determine whether you qualify for this type of payment plan.
Types of Installment Agreements
There are actually a number of different types of installment agreements, including:
- Guaranteed installment agreements, which are only available to taxpayers who owe less than $10,000 and can pay back the full amount of what they owe in three years;
- Streamlined installment agreements, which are available to taxpayers who can pay their debt in full within six years and owe less than $50,000;
- Partial pay agreements, in which taxpayers make regular monthly payments, but aren’t required to pay off their entire debt;
- In-business trust fund express agreements, which are available to businesses that owe less than $25,000 and require repayment within two years; and
- Routine installment agreements, which are available to those who don’t meet the criteria for guaranteed, streamlined, or in-business trust fund agreements and require submission of documentation related to income, expenses, and debts.
All of these agreements come with their own application requirements. Those who qualify for one of the two streamlined installment agreements, for instance, aren’t required to submit a financial statement when applying.
How to Make an Installment Agreement Request
How a taxpayer goes about making an installment agreement proposal depends on a few different factors. If, for example, a taxpayer has not yet filed his or her return, that individual would need to submit Form 9465 to apply for an installment agreement, or could instead opt to attach a written request for a payment plan with the monthly payment amount and due date to the tax return itself. Those who have already filed a tax return, however, but are still unable to pay off their debts in full, can still request a payment plan, but must generally make use of the online application. Similarly, a person who has not yet received a bill from the IRS can use the online application to establish a pre-assessed agreement. Finally, taxpayers who have received a bill from the IRS can, in lieu of using the online application or submitting Form 9465, attach a written request for a payment plan to the front of the IRS notice or by making an official request over the phone. Generally, the IRS responds to installment agreement proposals within 30 days of receipt.
An Experienced Tax Debt and Installment Agreement Lawyer
If you owe a debt to the IRS, you could qualify for an installment agreement. Please call 386-490-9949 to speak with dedicated Florida tax lawyer Ronald Cutler, P.A. about your own eligibility for a repayment plan.