Understanding the Different Types of IRS Tax Installment Agreements

October 13, 2023
admin
Blog
0

Are you feeling overwhelmed by your mounting IRS tax problems? What can you do if paying your tax debt quickly is simply not an option? For your fortune, the IRS allows taxpayers to pay off tax debt through an IRS installment agreement. An IRS installment agreement, also called an “IRS Installment payment plan”, allows taxpayers to pay their tax debt in parts, over an extended period of time. Find out more about each type of IRS payment agreement. This way, you can figure out which one is a good option for you, and you can finally say goodbye to your IRS tax problems!

What is an IRS Tax Installment Agreement?

The IRS offers a payment plan that allows taxpayers to pay their taxes in partial payments over a specific period of time. A taxpayer can apply for an IRS tax installment agreement if they meet the following criteria:

Taxes were filed and paid on time in records dating back 5 years.
All tax returns are filed.
No record of requesting for a tax installment agreement exists in past 5 years
Agreement to file and pay taxes in time for the given time slot.

If you meet the above criteria, the IRS may allow you to pay your taxes in installments, provided the total amount owed is not more than $10,000. The maximum amount of time the IRS gives a taxpayer to clear the balance is 36 months. If you are unable to pay your taxes in full, you can request an IRS tax installment agreement by filling Form-433-F to avoid the possibility of facing a federal tax lien in the future, or get in touch with an IRS installment agreement legal expert in Dallas.

The 4 Types Of IRS Installment Agreements

The IRS offers taxpayers four different types of payment plans. These include guaranteed, streamlined, partial payment, and non-streamlined agreements. Let’s explore what each one of these IRS installment plans entails.

1. Guaranteed Installment Agreement

A taxpayer who owes the IRS $10,000 or less is eligible to file for a Guaranteed Installment Agreement. Only individuals can apply for this payment plan and must pay their balance, including penalties and interest, within 3 years. This type of installment agreement ensures that the IRS won’t file a tax lien against you. This allows you to pay back your tax debt in installments without worrying about extra tax problems.

To apply for this type of IRS tax installment agreement, you have to meet the eligibility criteria, including:

Owing the IRS less than 10,000 dollars
Not having an installment agreement in the previous year. This means having correctly filed and paid the previous year’s taxes.
Not being able to pay tax liability at the right time or within 120 days of that date
Being able to pay off the liability within three years (in installments)
Committing to making the minimum monthly payment (at least)

If you meet these criteria, then you might want to consider applying for this IRS installment agreement.

2. Streamlined Agreement

If you qualify for a guaranteed agreement, then you’ll likely qualify for a streamlined agreement. By learning about both options, you can make an informed choice about an IRS installment agreement. In both cases, you’ll be able to pay off your debt in installments, without being subject to a tax lien.

Eligibility requirements do vary a little bit. Rather than a maximum of $10,000 in debt, you can owe up to $50,000 with this type of IRS payment agreement. Individuals and out-of-business sole proprietorships that owe the IRS $50,000 and agree to pay through direct debit or payroll deduction or active businesses that owe a total of $25,000 or less in taxes are eligible to file for a Streamlined Installment Agreement, or SIA.

Direct Debit in IRS Installment Agreements is an agreement on the mode of payment with the IRS in which the monthly payments are directly deducted from a taxpayer’s bank account. Taxpayers who owe the IRS $50,000 or less are eligible to apply for a DDIA. A taxpayer may also qualify for such a payment plan if they are seeking the withdrawal of a tax lien.

In the case of streamlined installment agreements, taxpayers, whether individuals or sole proprietors, are given up to 72 months to pay the balance, whereas businesses are usually given up to 36 months. To access this type of payment installment agreement, you’ll have to pay a fee. The few can be reduced if you opt for payments to be made directly from debit.

3. Partial Payment Agreement

Taxpayers who file for an Offer in Compromise but do not get approval, can request a Partial Payment Install Agreement, or PPIA. PPIA is a special payment plan in which the IRS allows taxpayers to pay smaller monthly installments than in case of other types of installment agreements. The IRS will come to an agreement with the taxpayer to accept partial payment of the taxpayer’s tax liability. The application procedure is different in such instances. You have to complete a financial statement form, which the IRS will carefully review. Once the information is verified, the IRS will proceed with deliberations. When approved, you’ll enter into the agreement on the condition of participating in a financial review within two years when changes can be made to the payment installments.

4. Non-streamlined Agreement

Lastly, this option applies to those owing more than $50,000 to the IRS. To get this type of IRS installment agreement approved, you have to fill out the necessary forms and provide the IRS with ample information. This information will be reviewed to come up with a decision. An experienced Dallas tax attorney can help you with this type of IRS installment agreement.

Application Process

In lieu of your total taxes owed and financial situation, there are four ways to apply for an IRS tax installment agreement.

Fill out the Form 9465 (Request for Installment Agreement) and directly mail it to the IRS.
Call the IRS toll-free helpline, 1-800-829-1040, and request an installment agreement.
If you are an individual who owes taxes of $50,000 or less to the IRS or a business that owes $25,000 or less, fill out the online tax installment agreement application.
Hire a tax professional to negotiate with the IRS on your behalf.

Need help getting an IRS installment agreement?

IRS tax problems are not impossible to resolve. Take help. If you are unable to pay your taxes, file for an installment agreement to avoid a potential tax lien. While at it, it is advisable to seek the help of an IRS tax lawyer. The Law Offices of Nick Nemeth has experienced tax law attorneys that can help you apply for and get approval for an IRS installment agreement. Do you want to find out what the best resolutions are to your IRS tax problems? Call us at (972) 484-0829 for a free consultation.

Please follow and like us:

Brent Vahle

19:13 02 May 24

I called to see if they could help reduce some penalties and fees. The person I spoke with told me it might be counterproductive for them to take my case since their feels would likely equal the amount of penalty/interest abatement. I decided to pass on moving forward but was so happy to hear a legal team, or any business for that matter, who has that much integrity. I feel most others would likely try to take my money anyway. I hope I never have to go through this again, but if I do, I will definitely use the Law Offices of Nick Nemeth!

Jason Winkle

18:44 02 May 24

Jaime Flores was very friendly, professional, and knowledgeable. She gave me some very valuable information which helped guide me with a plan of action. The free consultation is very much appreciated.

Matthew Swigart

12:14 02 May 24

Great attorney who was able to provide quick and useful advice. Although my situation did not warrant their services, they still took the time to discuss solutions I could explore. I highly recommend visiting this office!

Tony Pantoja

12:57 09 Apr 24

Very professional and very knowledgeable, Jamie Flores was very straight forward and professional, a firm that doesn’t just take your money, Thanks

Carla Atwal

10:52 02 Apr 24

Nick was wonderful in guiding me with direction on some tax questions I had. He was concise, and to the point, and was happy to provide general info to me at no charge. I truly appreciate him and would highly recommend him.

Miguel Alvarado

15:56 25 Mar 24

By far the best attorneys I have ever worked with. They’re are very helpful and supportive from day one. They went above and beyond to make sure all my documents were submitted on time and gave updates as soon as they received them. I cannot name a single flaw in their work. Their team of assistants are very professional and seem to all be on the same page. I’ve made multiple phone calls and sent a ton of emails to their staff and they were able to help me all through the course of the case. I cannot express my gratitude enough for how excellent they handled my case.

Lucy Foy

06:55 19 Jan 24

My first appointment I had with, Tax Attorney Nick Nemeth, gave me such a sense of relief. He listened and gave me his professional advice, Mr Nemeth took my case. I was well kept updated, by phone calls and letters. That really impressed me and gave me so much confidence in them. The case went on for a couple of months. The day I received the call from one of his team members Kyle, informing me that the case was resolved and that I owed absolutely nothing to the IRS, I was overwhelmed with joy. I would recommend this law firm to anyone that needs help, with any tax issue. Thank you, to the Law Firm of Attorney Nick Nemeth and his team.

Bradley Runyon

20:17 13 Jan 24

I received a tax bill in the mail from the IRS last year in 2023. The fees and penalties I owed were something I myself could not afford. I reached out to Nick Nemeth's firm and received the best experience you could imagine. The team was professional, educational, and fast. If you have a tax issue with the IRS using another firm other than Nick Nemeth's would be an error in judgment. I would recommend their services above others.

Sue Hulseman

19:55 11 Jan 24

Working with Nick Nemeth and his team to resolve my debt with the IRS was the best decision I could have made. I felt such relief knowing I didn’t have to deal with the IRS myself. They did a wonderful job and were responsive to my questions and kept me abreast of my case. My outcome was exactly what I was hoping for. I strongly recommend using them if you have an issue to resolve with the IRS.

R G

20:53 21 Dec 23

I had an incompetent tax preparer, who also ignored several notices from the IRS, which in the end resulted in a lien on my property. I did not know what to do and an attorney friend recommended that I contact the Nick Nemeth Law Offices. I met with Jamie Flores and Ivan Nalbantov in December 2021 for a free consultation, and right away was impressed by their thorough examination of my paperwork and extensive knowledge of IRS tax laws. I felt not pressured and appreciated their advice and in the end decided that I would pursue resolving the issue by myself. I paid the IRS Civil Penalty and, as recommended also submitted a letter to the IRS requesting a refund and explaining what happened. I am glad to report that my persistence finally paid off. My case took two years to resolve and I finally received a full abatement/refund check from the IRS in December 2023. I could not have done this without the straightforward recommendation of Jamie and Ivan; and I highly recommend the Nick Nemeth Law Offices to anyone needing help with the IRS.

Susan Wilson

03:27 25 Jan 23

I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.

Sarah Howard

03:44 14 Nov 22

I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.

M W

00:33 07 Aug 22

I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.

Spoilly Girl

23:49 03 Aug 22

The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.

Eddie Walt

19:44 12 Jul 22

During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!

What is an IRS Tax Installment Agreement?

The 4 Types Of IRS Installment Agreements

1. Guaranteed Installment Agreement

2. Streamlined Agreement

3. Partial Payment Agreement

4. Non-streamlined Agreement

Application Process

Need help getting an IRS installment agreement?

What Our Clients Have to Say

Dallas Office Address

Phone

Email