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How to Create an IRS Installment Agreement

Posted on : May 9, 2018

How to create an installment agreement with the IRS.  When you are facing tax challenges that seem impossible to approach, it is strongly recommended that you explore all possible avenues to resolve the issues before engaging an attorney.  Hiring the right tax attorney, however, can help you to address these issues at a bigger level if you have already attempted, or been unsuccessful, in resolving things on your own.  You can work with the IRS to create an installment agreement.

If you cannot pay a lump sum payoff for your tax debt, you need to evaluate the various options when the payment plan is established.  Many people want to get the lowest monthly payment plan possible and then pay more to get the balance down quickly in order to decrease their risk of defaulting if their money becomes tight.  As with any other payment plan that you might create with a creditor, the amount that you will pay depends upon the amount that you owe, the amount you can afford to pay in any income or assets you have.

There are many different programs to IRS has in their discretion, which allows them to determine whether or not they will accept a particular amount.  It can often take a great deal of work to get the IRS to agree on an affordable number, and this is why it is recommended that you retain a tax attorney to help you with this.  There are three major ways that you can make payments under a payment plan.  The first is payroll deduction, the second is a monthly direct debit electronic transfer, and then the last is to use their online payment system or to mail in checks.  The payment must be made at least several days prior to the due date in order to enable the IRS to receive it, as in conjunction with a payment plan.

A consultation with an experienced tax lawyer is one of the most commonly recommended methods to get on top of your tax related issues as soon as possible and to ensure that you do not face other consequences.  The support of a lawyer can help.

Posted by: The Krus Law Firm

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