IRS Tax Installment Agreement with The Law Offices of Nick Nemeth
  • August 17, 2018
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The Internal Revenue Service (IRS) has in place various installment agreements to help taxpayers pay off their tax debts with ease. These staggered payment methods are an alternative sanctioned by the IRS in the interest of taxpayers who find that paying their entire tax debt all at the same time is not possible. The IRS wants the money it owes from taxpayers, and so these installment agreements are designed to make tax payments trouble-free for taxpayers. Let’s now learn about the four common types of installment agreements available with the agency.

1. Guaranteed Installment Agreement

Taxpayers who want to avail guaranteed installment agreement with the IRS must meet the following conditions:

  • They owe less than $50,000 excluding interest and penalties
  • They have filed tax returns, paid owed taxes, and have not entered into any installment agreement in the last five years
  • They are not in a position to pay their tax liabilities on due date or within 120 days
  • They pay the minimum monthly payment

The greatest advantage of this installment agreement is the IRS doesn’t file a federal tax lien against taxpayers for their outstanding dues.

2. Streamlined Installment Agreement

A part of the IRS ‘Fresh Start Program,’ the Streamlined Installment Agreement is another IRS tax installment agreement. A taxpayer qualifies for this agreement if:

  • Their tax liability including interest and penalties does not exceed $50,000
  • The proposed payment is equal to or greater than the minimum acceptable payment
  • They can pay off the balance within 6 years

Like in case of a guaranteed installment agreement, the IRS doesn’t file a federal tax lien in streamlined installment agreement.

3. Non-Streamlined Installment Agreement

If a taxpayer owes more than $50,000, they can consider the non-streamlined installment agreement. This agreement is primarily for taxpayers whose repayment term is longer than five years, or who don’t meet the criteria for a guaranteed or streamlined installment. This installment agreement requires negotiations with the IRS as it falls outside the agency’s standard guidelines for automatic approval. In case a taxpayer is unable to pay taxes through the non-streamlined agreement, they may file for an Offer in Compromise.

4. Partial Payment Installment Agreement

As the name suggests, partial payment agreement is where a taxpayer enters into an agreement with the IRS for only a partial payment of their tax liabilities. It is basically based on what the taxpayer can afford to pay monthly. To qualify for this payment arrangement, taxpayers must submit Form 433-F that reports their income and living expenses. Following the approval of this payment plan, the IRS will perform a financial review every 24 months, which may result in an increase in the amount of installment, or termination of the agreement.

Unable to Pay Taxes? We Can Help!

If you are wondering how to best pay off taxes owed, consider the installment plan tax payment options discussed above. They are meant to make debt payment more manageable and less stressful for taxpayers in the U.S. The tax lawyers at the Law Offices of Nick Nemeth provide guidance to a number of clients on these and other payment solutions as a part of our tax help service. If you too are facing issues with tax payment, or have any questions or concerns, call (972) 426-2553, or click here and fill out the contact form. We are always ready to assist you.

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What Our Clients Have to Say

Susan WilsonSusan 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 HowardSarah 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.
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 GirlSpoilly 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 WaltEddie 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!
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