Installment Agreements allow you to make monthly payments when you are financially unable to pay your tax liability in full. This alternative allowed by the IRS has four different types of Installment Agreements. This includes Guaranteed, Streamlined, Partial Payment, and Non-Streamlined. The team at Allied Tax Advisory Group can match you with the agreement type most suitable for your needs. You can make installment payments using payroll deduction, direct debt, credit card, and check or money order.
Guaranteed Installment Agreement
To qualify for the guaranteed installment agreement with the IRS the following conditions must be met.:
- Owe less than $10,000.
- The taxpayer has filed tax returns, paid taxes owed, and not entered into an installment agreement within the last five years.
- The taxpayer is unable to pay the tax liability when due.
- The Tax Liability will be paid off within three years.
- The taxpayer must pay at least the minimum monthly payment amount.
Streamlined Installment Agreement
A Streamlined Agreement, in most cases, includes the same qualifications as the Guaranteed Installment Agreement. It also includes the following requirements.:
- The balance must be paid off within 60 months.
- The tax liability, penalties, and interest does not exceed $25,000.
- The payment is equal or greater than the minimum acceptable payment of $25.
Partial Payment Installment Agreement
The Partial Payment Installment Agreement allows taxpayers to enter an agreement with IRS to make partial payments of the tax liability. The taxpayer must complete a financial statement (Form 433-F) to report all living expenses and income. The IRS will review the information to determine if the taxpayer can qualify. If approved, the taxpayer will be placed under financial review every two years.
Non-streamlined Installment Agreement
- The Non-Streamlined Installment Agreement payment plan is an option for the taxpayer that owes $25,000 or more in tax liability.
- This agreement must be negotiated by the IRS and includes information about income, debts, living expenses, and assets
An Offer in Compromise is another option for taxpayers unable to pay tax liability through a Non-Streamlined Agreement.
Contact us today and we will help you secure an installment agreement with the IRS to best suit your needs as well as the demands of the IRS. The experts at Allied Tax Advisory Group are here to find the best fit for your secure financial future.
Ways to Make Payments
Installment Payments can be made using the following methods.
- Direct debit.
- Payroll deduction.
- Credit Card.
- Online Payment Agreement.
- IRS FRESH START & DEBT FORGIVENESS
- WAGE GARNISHMENT
- BANK LEVY
- TAX LIENS
- INSTALLMENT AGREEMENT
- OFFER IN COMPROMISE
- IRS AUDIT REPRESENTATION
- CURRENT YEAR TAX RETURNS AND EXTENSIONS
- FILE OR AMEND PREVIOUS YEAR TAXES
- AUDIT RECONSIDERATION
- IRS APPEALS PROCESS
- NOT COLLECTIBLE STATUS
- PENALTY ABATEMENT
- INNOCENT SPOUSE RELIEF
- INJURED SPOUSE
- FBAR FILING & FBAR REPRESENTATION
- UNFILED BACK TAXES