IRS Installment Agreements
A practical way to manage tax debt by making affordable monthly payments over time.
Structuring Your Path to Compliance
An IRS Installment Agreement, commonly known as a payment plan, is a formal arrangement with the IRS to pay your tax liability in manageable monthly installments. It's one of the most common solutions for taxpayers who cannot pay their debt in full immediately. Setting one up stops collection actions like liens and levies, as long as you adhere to the terms.
At Tax Relief Pros, we don't just set up a payment plan; we analyze your financial situation to negotiate the most favorable and affordable terms possible.
Types of Installment Agreements
The IRS offers several types of payment plans, each with different eligibility requirements:
For tax debts under $10,000. The IRS is required to accept your proposal if you meet certain criteria, such as having filed all your returns.
For tax debts up to $50,000 (or $25,000 for businesses). These have a simplified approval process and can be paid over a period of up to 72 months.
For taxpayers who cannot pay their debt in full within the collection statute of limitations. You make monthly payments, but may not pay the entire debt before it expires.
A specific type of streamlined agreement for small businesses to resolve payroll tax liabilities.
The Setup Process and What the IRS Requires
Applying for an installment agreement requires careful preparation. Our team handles the entire process to ensure a smooth and successful outcome.
Before the IRS will consider a payment plan, all required tax returns must be filed. We can help you prepare and file any unfiled returns to bring you into compliance.
We review your income, expenses, assets, and liabilities to determine an affordable monthly payment amount. We then prepare and submit Form 9465 (Installment Agreement Request) along with supporting financial statements if required.
Once approved, it's crucial to make payments on time and stay current on future taxes. If your financial situation changes, we can help you petition the IRS to adjust your payment amount.
Why Professional Help Matters
While some taxpayers can set up simple agreements online, professional assistance is vital when:
- You owe a large amount.
- Your financial situation is complex.
- You believe you cannot afford the standard payment calculation.
- You need to negotiate a Partial Payment Installment Agreement.
Our expertise allows us to present your case effectively, often resulting in lower monthly payments and more favorable terms than you could achieve on your own.
Ready to Solve Your Tax Problems?
Don't wait another day. Contact our expert team now for a free, confidential consultation and take the first step towards financial peace of mind.