IRS Installment Agreement

If you can’t afford to pay your tax debt in full immediately, don’t stress.

The IRS offers tax installment agreements that allow you to settle your tax debt over time in manageable monthly payments giving you some breathing room in your budget. East Coast Tax Consulting Group will ensure that you receive the best possible IRS payment plan.

In order to be approved for an IRS payment plan, you must file all required tax returns. The IRS cannot take enforced collection action, including the levy of bank accounts or wages, while your request for an installment agreement is under consideration, while it is in effect, and for thirty days after your request has been denied, or for any period while an appeal of the denial is being reviewed by the IRS. However, during the course of an installment agreement, interest and penalties continue to accrue. Depending on the amount of the tax liability outstanding, the IRS may file a tax lien until the liability is paid in full.

The IRS has established guidelines to determine the payment amount and time frame for installment agreements. Depending on the amount of taxes you owe, the IRS may require you to provide full financial disclosure of your assets, income, and expenses to determine the monthly amount they believe you are capable of paying and over what period of time. If you cannot pay your back taxes in full by the end of the collection period, but can pay some of the tax you owe, you may qualify for a partial payment installment agreement.

If the determination is not within your budget and you accept the payment plan, you will most likely default on the agreement, resulting in the IRS commencing collection activities against you. East Coast Tax Consulting Group’s experienced tax representatives will work to negotiate an installment agreement that fits your individual needs and budget. Schedule a free consultation today to achieve the best possible IRS payment plan!