IRS Installment Payment Plans

 

IRS Installment Payment Plan – For taxpayers who need more time to pay their IRS back taxes, an installment payment plan may be the answer.  In the right situation, a taxpayer entering into an installment agreement may be an effective means of resolving their tax debt problems.  We can assist you in determining whether this alternative may be appropriate for you and in structuring any payments so that they produce the most favorable result for you. 

 

Streamlined Installment Agreements for Individuals

 

The IRS recently expanded their Fresh Start Initiative to allow more taxpayers to utilize a Streamlined Installment Agreement.  Under the Streamlined Installment Agreement process, taxpayers are not required to provide detailed financial information concerning their assets as would otherwise be required and the procedures for approval are more automatic if the conditions are met. 

 

Individual taxpayers who owe less than $50,000 in back taxes may request to pay their tax debt over a period of up to 72 months (or prior to the Collection Statute Expiration Date, if earlier).  There are several requirements that must be met in order to qualify for a Streamlined Installment Agreement.  For example, in order to qualify, the taxpayer must be current with all filing and payment requirements.  

 

For individual taxpayers having a balance due of between $25,001 and $50,000, a limited amount of financial information may be required during the application process and the payments must be made through a Direct Debit Installment Agreement.