If you have IRS Problems that include unpaid back taxes one possible solution might be an installment agreement with IRS. An important factor to note is that you must be current on this year’s tax returns and you must have filed all your past due tax returns to be eligible for an installment agreement.

With an installment agreement, you actually do not have to pay the debt in full. It allows you to make regular monthly payments to the IRS and after the terms of the agreement are met, the remainder of the debt is forgiven.

Typically, if you owe $25,000 or less, you can request an installment agreement plan for 60 months. If your debt is more than $25,000, a negotiation with the IRS will ensue.

You need to find out exactly how much you actually owe in unpaid taxes. If you do not have copies of your tax returns, request this information from the IRS. Remember that the amount you owe needs to include the penalties and interest that has been accruing.

A qualified IRS Problem Resolution professional can assist you in filling out Form 9465 (Installment Agreement Request) and help you figure out how much you can afford to offer for your monthly payment. Form 433-A (Collection Information Statement) is also necessary. You will need three months of documentation of income and expenses to complete this form. The next step is to write a letter asking for an installment agreement. Send this letter plus the two forms and documentation to the IRS. Expect a response from the IRS in about 30 days.

It is important for you to know that even while you are making payments on an installment agreement the interest and penalties on your tax debt will continue to accrue.

After you have received a positive response from the IRS, make it a priority to send the payments every month. Your options will be to pay by check, money order, credit card, EFTPS (Electronic Federal Tax Payment System), or automatic withdrawals. The electronic or automatic payments are recommended because there is no chance for the IRS to lose a check or money order.

Our office can help you handle your IRS Problems whether you need help with an installment agreement or some other IRS Problem. We can help you determine what your options are so you can settle your tax debts. We can also guide you through negotiation with the IRS if necessary. Contact us today so we can get started!