| There is more to a tax payment plan than you may | | | | of you financially. This Installment Agreement is more |
| realize. One detail to become aware of is that your | | | | difficult to obtain than others. |
| tax payment plan is not going to necessarily be the | | | | For taxpayers with over $100k in debt, a longer-term |
| same as the next person. Some taxpayers believe | | | | Installment Agreement will have to be utilized and the |
| that every payment plan is the same. In other words, | | | | IRS may want you to liquidate assets in order to bring |
| you pay off your debt over the course of several | | | | down the total debt you owe before accepting any |
| months or years and that is that. Unfortunately, there | | | | type of payment plan. |
| are many different tax payment plan structures and | | | | If If you are worried about negotiating on your own |
| you need to know what they are to ensure that you | | | | you should hire a tax settlement firm for assistance. |
| get involved with the one that is suited for how much | | | | This can be a good way to put somebody between |
| you owe. | | | | you and the IRS. Not to mention the fact that a |
| How much you owe will have a lot to say about the | | | | qualified professional has seen your situation before, |
| way your tax payment plan looks in the end. For | | | | and knows how to respond as things move forward. |
| instance, somebody with $10,000 of debt or less will be | | | | A good tax professional knows how to get you the |
| dealing with different circumstances than a taxpayer | | | | best tax payment plan with the lowest possible |
| with $100,000 or more in debt. If you owe under $10k, | | | | interest rate. |
| you are "guaranteed" an Installment Agreement. This is | | | | You need to know what you are doing when it comes |
| guaranteed to you under the law, does not require full | | | | to setting up a tax payment plan. There are five basic |
| financial disclosure, and typically does not require the | | | | structures including guaranteed installment agreement, |
| help of a professional. | | | | streamlined installment agreement, in-business trust |
| If have over $25,000 or less in tax debt you will look to | | | | fund agreement, long term installment agreement, and |
| utilized a "Streamlined Installment Agreement." It is | | | | installment agreement on specified balance due |
| streamlined because it usually will not require you to | | | | accounts. As you can see, this is anything but a |
| show the IRS all your assets, liabilities, and income. | | | | "choose and hope for the best scenario." The IRS has |
| If you owe over $25,000 but less than $100,000, then | | | | their standards and you must also know what you are |
| you will need to fill out a Collections Information | | | | doing. |
| Statement which provides the IRS a complete picture | | | | |