Practice Areas • Tax Controversy

IRS installment agreement

IRS Payment Plan Program to meet your tax liability obligations

Miami Tax Attorney: Tax Installment Agreement to Resolve IRS Tax Debt

 The IRS offers taxpayers several options to pay outstanding debts to the IRS Collections including a federal tax payment plan, which is formally referred to as an IRS tax installment agreement (“IRS installment plan”). Our firm assists taxpayers and their families in identifying if they do qualify for this IRS tax payment plan and how to timely file their irs tax payment plan forms. 

Additionally, our firm advises clients of their rights during the IRS collection process and how individuals can properly manage their IRS tax debt so that they can eventually be free from tax liability to the service. 

Partial Payment Installment Agreements (PPIA)

There are many circumstances that our firm would advise clients to submit a partial payment installment agreement (PPIA) to the IRS. If approved, this would give the taxpayer the ability to pay less than the full payment of the outstanding tax liability. We would assist our clients in preparing this IRS installment agreement forms including financial disclosures. 

IRS Collections: IRS Installment Payments

The IRS uses their own metrics when calculating your installment agreement. They consider many factors when determining the monthly payment. They will make this determination primarily based on the amount needed for your essential living expenses. It is important that you look carefully to prepare specific guidelines for each client to figure out how much they need. 

We recommend that you find an experienced and dedicated Miami IRS Installment Agreement Attorney to assist you in preparing your IRS payment plan form.

Downsides to applying for an IRS Installment Agreement

Although the IRS installment agreement program is a good option for many taxpayers to get caught up with their IRS Tax liabilities, it does have its downsides. Obtaining an IRS tax payment plan does not stop interest and penalties from accruing. So you will be paying interest and penalties as you continue to pay your tax installments (which can last several years). 

Applying for an IRS Installment Agreement: Form 9465 and Form 433-F

The IRS will require any taxpayer applying for a tax payment plan such as an installment agreement to submit form 9465. 

According to the Service, taxpayers are eligible to a guaranteed installment agreement if the taxes owed are not larger than $10,000 and during the past five years they have timely filed all returns and paid any income tax due and have not previously entered into an installment agreement for the payment of income tax. In addition they must agree that they will pay the full amount of tax liability within 3 years and they are financially able to meet that commitment. 

In addition to filing form 9465, if you would like to qualify for an IRS Installment agreement you will need to provide a collection information statement to the IRS. This is a long form where the IRS asks you to provide information on current income and assets. 

In this form you will need to list all accounts and outstanding lines of credit, real estate holdings including any homestead property, vehicles, boats, recreational vehicles, paintings or antiques, credit cards, business information, employment information, non-wage household income and any other income such as gambling income or rent subsidies. 

The IRS will also ask for a list of all your expenses, including rent and other housing costs, student loan payments, court ordered payments, transportation, medical costs, and other out of pocket costs related to your personal  healthcare. 

Approval of an IRS Installment Agreement

The IRS will generally approve or deny an installment agreement request within thirty (30) days of application. If a request is approved the IRS will send the taxpayer a notice describing the terms and conditions of the IRS Installment agreement.

What are the benefits of Paying my taxes in Full?

One of the primary reasons that you should file a tax return and pay your taxes on time is because failure to pay will result in interest and penalties being assessed on your total tax liability. Penalties and interests will compile quickly and will make it even more difficult to pay out outstanding IRS debt. 

In addition to penalties and interest, it may be difficult to qualify for a loan from a bank if they know that you have large tax liability and your future IRS refunds may be offset to pay outstanding tax obligations that were not met. 

Polidoro Law: Miami Installment Agreement Attorney

If you have an IRS balance or other tax liability with the IRS it is important that you make a payment arrangement. Our team at Polidoro Law has the tax law professionals that are qualified to provide you with the resources and knowledge you need when negotiating your federal tax payment plan or any other payment arrangement. In addition, you should act swiftly as the interest and penalties will accrue the longer you wait.

 

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