Setting Up an Installment Agreement
At some point, you many find yourself in a sticky situation with your tax bill. On one hand, the IRS wants your money ASAP. You, on the other hand, want to keep your head above water while paying off your tax bill.
Oftentimes, the solution is to set up an Installment Agreement that allows you to pay off your tax debt through monthly payments, just like you do with a car loan or a mortgage payment. We’ve helped hundreds of our clients set up affordable installment payments with the IRS.
Bryson Law Firm, L.L.C. Can Help
As we say, a tax issue is a legal issue, so it’s important to be represented by a tax attorney during Installment Agreement negotiations. You could try to set up an Installment Agreement on your own, but it may take you longer and the payment terms may not be as favorable to you. The sooner you contact Bryson Law Firm, L.L.C. for a free initial consultation, the sooner we can work on getting you into an Installment Agreement that meets your needs.
Here’s the issue when working with the IRS on your own: The agency will look at your monthly bills and determine what they believe is an acceptable monthly payment for you to make. The problem is they’re looking out for their best interests and they may pressure you into a monthly payment that stresses your finances every month. Remember, the IRS only has 10 years to collect your back taxes, penalties, and interest, so they’re looking for you to pay off your debt before the 10-year deadline.
The solution is to seek representation from Bryson Law Firm, L.L.C. We go into negotiations with your best interests at heart. We negotiate with the IRS to settle on a monthly payment that best suits your budget. We look at all the factors involved in your finances and find the sweet spot between your ability to meet all your monthly bills while paying off your tax debt as soon as possible. Because, keep in mind, you could be paying anywhere from 8-10 percent in interest and penalty charges to the IRS every year, so the sooner you get it paid off the better.
Additional Advantages of Installment Agreements
There are other benefits to Installment Agreements in addition to the affordable monthly payments. Once the agreement becomes effective, the IRS suspends the collection process and removes any bank and wage levies, and stops sending collection notices and making harassing phone calls. However, the IRS may still impose liens on your assets until your tax bill is paid in full.
But setting up an Installment Agreement is not automatic. You need to meet certain requirements to be eligible for a monthly payment plan. First, you will need to submit all your financial information for review by the IRS. You must also have all your tax returns filed. In addition, the IRS looks at your total tax bill to determine which type of Installment Agreement you qualify for. We can help you get your paperwork in order so we can seek approval for an acceptable Installment Agreement.
But you also don’t want to default on your Installment Agreement payments. That means the IRS would start collection actions all over again, and can make your ability to set up another Installment Agreement more difficult. That’s why negotiating an acceptable payment schedule for you is so important.
Is an Installment Agreement Right for You?
Just like other tax options, Bryson Law Firm, L.L.C. can appeal the decision if the IRS rejects our request for an Installment Agreement. Our firm has an excellent working relationship with IRS personnel, so they know our clients are serious about paying off their debts and we won’t settle for an agreement that doesn’t suit their finances.
An Installment Agreement is just one of the options we can look at for your situation. We weigh the benefits of monthly payments compared to other choices, such as negotiating an Offer in Compromise, applying for Currently Not Collectible status, or other solutions available to us.
To find out more about all the options available to you, call or click to set up your free initial consultation with one of our tax attorneys at Bryson Law Firm, L.L.C.