Pay Over Time with an IRS Installment Agreement
Suddenly owing a bill for back taxes can be shocking to anyone. But if you lack the financial means to pay your debt back immediately (which the IRS may expect you to do), you have to find another way. Fortunately, you can submit an IRS Installment Agreement form.
How an IRS Payment Agreement Works
An Installment Agreement with the IRS works much like any other monthly payment arrangement you would have for, say, a loan or line of credit. Rather than being forced to pay back the entire balance at once, an IRS installment plan allows you to pay back your debt over an extended period of time – perhaps as long as several years.
You can put in an IRS Installment Agreement request if you lack the ability to cover the full sum of your liability with one payment. Rather than simply giving up on an unpayable balance, your Installment Agreement (IRS approval pending) provides you with a viable option to resolve your tax issue.
How to Request an IA
Rather than simply doing an internet search for “IRS Installment Agreement phone number”, consider your options for making such a request. After all, you may not want to seek an IRS installment alone. While you might seem well-equipped to argue your case for an IRS Installment Agreement, calculator in hand, there are some subtle nuances to the terms of such an arrangement.
You may wish to seek assistance from a professional tax relief company for your installment payment agreement such as the Tax Defense Network. A licensed tax professional can determine the best monthly rate for which you may be approved, request the IRS installment agreement online or by phone, and finalize the details of your arrangement. The upside for you is that some IRS installment agreements are built around how much you owe and your ability to pay; therefore, a tax pro knows how to get you the best arrangement possible.
IRS Installment Agreement: Balance Concerns
It’s important to remember that no matter what installment agreement template you end up with, you’ll still be responsible for paying interest and penalties for any delinquent tax balance. So, even if you’re making your regular monthly payments, you could still be responsible for paying these additional charges until the liability is completely satisfied.
No matter if your streamlined installment agreement allows you some breathing room, you should still pay as much as you can as fast as you can (and a tax professional may encourage you to do just that). The faster you pay, the less it will cost you in additional penalties. On the other hand, if you can’t afford to pay anything toward your tax debt, don’t just simply fill out an installment agreement form knowing you can’t fulfill the terms. You may be eligible for alternative options, such as Currently Not Collectible status, which prevents you from having to pay anything toward your debt for a certain period of time. It’s in your best interest to explore every available option before submitting Installment Agreement Request Form 9465 – and to do so with a licensed tax professional at your side.