Installment Agreements
57Possibly the best option you have to solve the IRS issue of unpaid back taxes is an installment agreement. You are qualified for an installment agreement if you're current with your tax returns, including the past due ones.
You don't have to settle the debt in full with an installment agreement. It allows you to make regular monthly payments and after the terms of agreement are met, the remainder of the debt is forgiven.
A debt of over $25,000 will require negotiation with the IRS, but an installment agreement plan for sixty months is typical for figures less than that. You need to know just how much you owe in back taxes. Get the information from the IRS if you do not have copies of the tax returns. Be aware that the figure you owe has to include the penalties and interest that's been accruing.
An experienced IRS Problem Resolution professional can assist you in accomplishing Form 9465 (Installment Agreement Request) and help you figure out the figure you can afford to offer for the monthly payment. Form 433-A (Collection Information Statement) is also necessary. You will require three months' worth of documents showing income and expenses to accomplish the form. The next step is to pen a letter asking for an installment agreement. Send this letter along with the two forms and documents to the IRS. Expect a response from the IRS in about 30 days.
You must know that while you are paying your tax debt with an installment plan, penalties and interest continue to accumulate.
Prioritize and send payments each month. You can send payments by check, money order, Electronic Federal Tax Payment System (EFTPS), automatic withdrawal, or credit card. The electronic or automatic methods are ideal because there's a chance that the IRS might lose checks or money order.
Whether you need help with an installment agreement or another IRS problem, our company can help you. We can show you how to pay your unpaid taxes. We can also walk you through negotiations with the IRS if necessary. Call now so we can get started!
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