Installment Agreements or payment plans are payment arrangements the IRS allows taxpayers to pay liabilities over time. If you cannot pay your total liability by the end of the collection statute expiration date but may be able to pay a portion of the tax, you may be able to enter in to a partial payment installment agreement. Impact Tax Resolution will negotiate the lowest possible payment plan for your circumstances.
Understand that while the installment agreement is in place penalty and interest continue to accrue.
What can an installment agreement do for you?
- No collection activity can be taken while you have a pending installment agreement.
- Levies may be released while an installment agreement is pending.
- In general Levies must be released when an installment agreement is approved.
- You are protected from collection activities 30 days after a rejection for approval.
- If you default or the installment agreement is terminated you have another 30 days to appeal.
- You can appeal a terminated, defaulted, or rejection of an installment agreement. No collection activity can be taken while in appeal.
- Installment agreements may allow you to affordably pay down your liability with out putting you in economic hardship.
Careful Financial Review
In many circumstances when an outstanding balance is owed above $50,000 a collection information statement will be reviewed by the IRS before they will approve an installment agreement.
Careful planning and strategy is needed in order to negotiate the best possible payment plan without the taxpayer having to leverage assets or pay a large lump sum.
ITR will help you negotiate the lowest possible payment arrangement after careful planning and review. We look forward to hearing from you.