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INSTALLMENT AGREEMENT
WHAT IF I CAN'T PAY MY TAXES?
When you owe the IRS more than you can afford to pay at once, there's another option available before contacting a bank or family member for a loan.
If you're up-to-date on your tax returns and don't have funds available for payment, the IRS may allow you to make monthly payments based on your ability to pay.
Although the IRS may file a Tax Lien against you, they may suspend other collection activity as long as you meet your monthly obligation.
WHAT'S AN IRS INSTALLMENT AGREEMENT?
Just like it sounds, an IRS Installment Agreementallows taxpayers who can't pay their tax debt today to pay it over time through regular that they can afford. An Installment Agreement isn't automatic. You still have to prove that you can't pay via a single lump sum payment and can afford the payment plan. You'll have to pay interest on the unpaid amount, but at least the interest is deductible on your next year's tax return.
WHAT'S REQUIRED FOR AN INSTALLMENT AGREEMENT?
To qualify for an Installment Agreement, you'll have to disclose your necessary and reasonable living expenses‐including paycheck stubs,
verification of rental expenses, utility bills, medical payments, car expenses (including insurance), and groceries for your family.
You'll also have to disclose your assets to show that you don't have cash in an accessible account that could be used to pay your taxes. The
information provided shows the amount you can afford to pay the IRS while continuing to pay your other necessary living expenses. Although it's a
lot of paperwork, an Installment Agreement can stop the IRS's collection activity against you.
You must also be up-to-date on all your tax return filings.
It's often smart for a taxpayer to avoid contacting the IRS yourself. Remember, the IRS is a collection agency, and, like all collection agencies, any
information given to them will be used to find your assets if your Installment Agreement fails to pay your tax debt.
You're not alone during this troublesome time. Our law firm has the tax law knowledge and experience necessary to represent people like you before the IRS.
We can assist you in arranging an Installment Agreement to pay off your IRS tax debt. Call us today.
