Installment Agreements
Installment Agreements, as the name suggests is a payment option that allows you to make payments on the tax you owe.
Call it payment agreement, payment option, or payment plan these are all the same. The goal is to get in compliance with your tax obligations
Option to Pay in Full
A payment plan can certainly make it easier to pay. However, if you are able to pay the full amount as quickly as possible, you can save a lot of money. The full payment also helps you minimize the interest and penalties you will be charged.
For those who cannot resolve their tax debt immediately, however, an installment agreement can be a reasonable payment option
Installment agreements allow for the full payment of the tax debt in smaller, more manageable amounts. If you enter into an installment agreement, your payment amount should be based on your ability to pay. It should also be an amount that you can maintain over the duration of the installment agreement.
Other Requirements When Entering Into an Installment Agreement
When entering into an installment agreement, you must be compliant with the payments. If you miss payments, you will have to start over. This would not be beneficial because the debt and penalties will continue to accrue.
A failure to pay your installment agreement could also hurt your chances that the IRS will work with you again.
Another requirement is that you keep your tax filing current. The IRS will not work with a taxpayer that falls from compliance with their filing requirements.
Taxpayer Rescue can review your case to see if you qualify for an installment agreement. We can also prepare and file your taxes to ensure that you are always in compliance. We are a one-stop-shop for all your tax needs
If you have some ability to pay but you are overwhelmed on how to get started, call us now for a consultation at 602-123-4567. You also have the option to complete our contact form here → Contact Us. Be sure to describe your situation in detail and a tax professional will contact you soon.
