It can be overwhelming to find out you owe a tax debt that’s larger than you can afford to pay. With knowledgeable advice and professional help negotiating with the IRS, paying a debt owed to the IRS doesn’t have to be financially crippling. Read on to learn more about how taxpayers can satisfy debts owed to the IRS through installment plans. If you have any additional questions or want help negotiating your own payment plan, contact the skilled and experienced Dallas tax attorneys at Scammahorn Law for a consultation on your case.
IRS offers multiple installment agreement options
The IRS offers installment agreements under four main categories: Guaranteed, Streamlined, Partial Payment, and Non-Streamlined.
- Guaranteed installment agreements are available to taxpayers who owe less than $50,000 and who are not able to pay their tax liability when due or within 120 days. If the taxpayer would be able to pay the debt off within three years and can make the minimum payment (the entire amount due to the IRS divided by 30), then they may be eligible for a guaranteed installment agreement.
- Streamlined installment agreements are available to taxpayers who owe less than $50,000 in total taxes, interest, and penalties, and can pay the debt within 72 months. The taxpayer may propose their payment amount, so long as that amount is equal to or greater than what the IRS deems a minimum acceptable payment (either $25 or 1/50th of the total amount owed, whichever is greater).
- Partial payment installment agreements will require that a taxpayer submit a financial statement of their income and expenses, and, if available, information on assets that the taxpayer would be able to sell to pay down the debt. If eligible based on the IRS’ review, the taxpayer can make a partial payment of their tax liability.
- Non-streamlined installment agreements are available to taxpayers who owe $50,000+ in taxes and can make monthly payments toward this debt. These agreements are negotiated on an individual basis with the taxpayer, and help from a skilled tax attorney in negotiating the terms of a non-streamlined installment agreement is strongly advised.
Get help in obtaining the right IRS installment agreement
The IRS has several options available to you, but you have to know the law to know when the IRS is dealing with your case fairly. Installment Agreements are monthly payment plans, but there are different types of plans with different terms. Taxpayers handling their cases themselves often end up paying more than they would have if they had competent legal representation. Scott Scammahorn, Tyler tax attorney and founder of the Scammahorn Law Firm, will analyze your financial situation to determine the best option for you to resolve your IRS problems. If the best option is an installment agreement, he will negotiate the most favorable terms possible for your case, using the law to your benefit. Contact the Dallas tax attorneys of the Scammahorn Law Firm today to put an end to your tax problems. We serve individuals and businesses throughout Texas, including Tyler, Nacogdoches, Marshall, Longview, Palestine, Dallas, Fort Worth, Abilene, Odessa and Plano. Contact the Scammahorn Law Firm today.