Installment Agreements

An installment agreement, with the exception of partial pay, affords the taxpayer who has the means financially to pay off the full tax debt owed to the government, but to do so over a period of time. This allows the taxpayer to meet their obligation to pay, but at the same time enable them to live a comfortable life.

There are various installment plans that may fit your situation and satisfies the IRS.  There are four types of agreements:

Guaranteed – Owe taxes of $10,000 or less, have filed and paid preceding five taxable years, agree to fully pay liability within 3 years, agree to file and pay tax returns during the term of agreement, and have not entered into an installment agreement during any of the last five taxable years.  This can be done with a simple phone call, no collection information (433A) is needed.

Streamlined – This was updated for the Fresh Start Initiative in 2012, and is for taxpayers who owe less than $50,000, can full pay within 72 months, and has not entered into an installment agreement during the last five years.  As with guaranteed, just make a phone call and set up agreement.  No 433A needed for this.

Regular Agreement – This is for those who don’t fit the guaranteed or streamlined agreements. This one will require that the 433A and/or 433B be filled out and all backup documentation is provided with it and sent to the IRS.  The numbers need to be analyzed by the taxpayer representative (EA) and the IRS agent to get the agreement set up.

Partial Pay – This follows the same procedure as the “regular agreement” but conditional expenses are not allowed, and using one year of actual expenses is not allowed. The taxpayer will need to provide a financial update when requested to see if an adjustment to the agreement needs to be made.

We are here to work with you ironing out the agreement and sharing more in depth information.