| Every year there are thousands of people that cannot | | | | The individual IRS offices will approve installment |
| pay in full the amount of taxes that they owe. If you | | | | agreements up to $10,000. If the amount is higher than |
| are one of these people who cannot pay their entire | | | | $10,000 they will request additional financial information |
| tax bill owed, an installment agreement could be a | | | | and will require some more paper work, sometimes |
| good choice for you. This type of agreement can | | | | people hire tax professionals to help with installment |
| solve just about any issue having to do with back | | | | agreements above $10,000. |
| taxes ranging from not being able to pay to removing | | | | Once your installment agreement is accepted with the |
| a tax levy. This type of agreement is easy and will put | | | | IRS you are on good terms with the IRS and they will |
| you on good terms with the IRS. | | | | honor your agreement. There are several things that |
| An installment agreement is the term used by the IRS | | | | you can do to make the agreement ineffective and |
| for a payment plan. Setting one up will allow you to | | | | the IRS can begin taking collection actions against you. |
| pay off the taxes that you owe over a specified | | | | You must not miss any payments, cannot fall behind |
| period with a minimum monthly payment amount. The | | | | on any other taxes due to the IRS, you must give |
| amount of your monthly payment must be large | | | | updated financial information when requested to the |
| enough to pay off the entire balance of taxes owed in | | | | IRS or the IRS finds out that you gave false |
| about a 2 year period. Sometimes a payment plan can | | | | information when requesting the agreement. |
| be rejected for an unreasonable payment amounts, | | | | At times when agreements are request and the IRS |
| but the IRS will get back to you with a more | | | | feels that it may seem a bit unreasonable, they will try |
| acceptable amount. One thing to keep in mind is that | | | | to pressure you to sell some of your assets or to |
| while the amount of taxes is owed it is still accruing | | | | borrow money from friends and relatives. Do not let |
| interest monthly and the IRS requires you to pay | | | | this pressure get to you. Intimidation is one of the |
| interest on the outstanding balance, so the faster it is | | | | strongest weapons of the IRS, they would much |
| paid off the less you will pay in interest. | | | | rather collect tax amounts sooner rather than later and |
| To request an installment agreement you will have to | | | | it is in their interest to try to make you pay sooner. |
| download form 9465 from the IRS and fill it out | | | | They will accept your agreement, so don't give into |
| appropriately to set up the correct payment amount. | | | | any pressures you may encounter. |