What is an Installment Agreement?
Installment Agreements allow taxpayers who cannot pay their back tax liability in full or don’t qualify for an Offer in Compromise the option to pay through monthly payments. There are guidelines that determine the payment amount and time frame for the agreement. Additionally , a taxpayer must be compliant with all past tax filings before entering into an Installment Agreement. Depending on the circumstances and the amount of time that the tax authority has left to collect the tax debt, the Installment Agreement may pay all or part of the back tax liability. Once an Installment Agreement has been established, taxing authorities will suspend their collection efforts and refrains from issuing wage garnishments, bank levies, sending notices and making harassing phone calls. For taxpayers that cannot afford to pay their back taxes in full and do not qualify for an Offer in Compromise or a Currently Not Collectible status, an Installment Agreement may be their best alternative. For more inf
Delinquent Returns If you have tax returns that have not been filed, you really need to have a professional prepare your delinquent returns and then file them as soon as possible. If you make an effort to get back into compliance before the IRS takes action to force compliance, then you will have less of a chance of being audited or having substantial penalties imposed – or even worse, potential criminal prosecution for willful failure to file! In most situations, you will be faced with a delinquency penalty (based upon the tax due), failure to pay penalty and interest – computed from the due date of the return. Paying your taxes The IRS will almost always allow you the option of paying your tax liability in installments. You will pay a one-time fee for this opportunity. Please see the page on this site that discusses installment payments in depth. Further, if the amount of tax you owe is far greater than you could ever pay, you may qualify for an Offer in Compromise. This program enab
