If you're struggling with tax debt and can't afford to pay it all at once, consulting a tax attorney to negotiate an installment plan with the IRS might be a suitable option. This approach allows you to pay your overdue taxes in manageable monthly payments, helping you maintain a positive relationship with the tax authorities. Once an installment agreement is in place, professional assistance may reduce certain penalties.
Understanding IRS Installment Agreements
To qualify for an installment agreement, unfiled tax returns must be submitted first. A tax professional can then assist by submitting the necessary IRS form to request an installment plan. There's a fee for setting up this arrangement, and interest on the tax debt accumulates until the debt is fully paid.
Options for Installment Payment Plans
The IRS offers various payment plans. Some plans allow for minimal monthly payments until the statute of limitations expires, potentially forgiving the remaining debt. Other plans require full repayment with larger monthly payments. However, these payments are calculated to be manageable based on the taxpayer's financial situation. Making these payments consistently and on time is crucial to prevent defaulting on the plan.
Choosing the Right Installment Agreement
The IRS has several installment plans, each with its own eligibility criteria. Getting an installment agreement is relatively straightforward, especially with the help of a tax attorney, when the tax owed is under a certain threshold. Consulting a tax attorney can help you navigate the process and select the most appropriate payment plan.
To explore this option further, consider contacting a tax attorney for a consultation.
