You receive an IRS notice of deficiency and you cannot pay it in full. You have too many assets and income to qualify for an Offer in Compromise. The IRS wants you to pay the balance in full. You cannot pay the full amount but you want to take care of this balance due.
Types of Installment Agreements
- Guaranteed Installment Agreements
- Streamlined Installment Agreements
- Trust Fund Express Agreements
- Long-Term Installment Agreements
Installment Agreements on Specified Balance Due Account
The IRS Restructuring Act of 1998 requires the Secretary to grant an Installment Agreement at your request if:
You cannot afford to pay your tax bill in a short term;and
Within the previous five years, you have not failed to file or pay your taxes and have not entered into an Installment Agreement;and
When requested by the Secretary (typically when greater than $50,000 owed), you (or your representative) submits financial statements (433A, 433B, 433F); and
The Secretary determines that you are unable to pay the tax due in full;and
You can fully pay the liability with equal monthly payments within 3 years (sometimes 6 yrs); and
You agree not to miss any payments over the term of the payment plan; and
You pay a fee for applying for the request (now it is $105 by check, $52 with electronic payment and $43 for low income); and
All documentation is properly submitted;and
You comply with the tax laws and the terms of the agreement for the period (up to 3 years) that the agreement is in place.
We can assist you in the planning and preparation of a successful filing.