Payment Plans Installment Agreements
  • June 23, 2022
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The Internal Review Service (IRS) offers several debt relief options for taxpayers that are facing difficulty paying outstanding taxes. While available options include OIC (Offer in Compromise) and CNC (Currently Non-Collectible), an Installment Agreement (IA) remains the most widely preferred option. It’s worth remembering that an IA doesn’t actually forgive your debt but allows taxpayers to pay outstanding taxes over a set period of time. For taxpayers with unfiled tax returns, an installment agreement happens to be the easiest option to qualify as compared to other IRS debt forgiveness programs. We recommend that you consult with a Dallas tax lawyer to know your eligibility. Before you go ahead and seek unfiled tax help, let us discuss the different aspects of IRS IA and whether a taxpayer can have 2 Installment Agreements at the same time.

Related Blog Post: Important Tax Debt Relief Strategies to Consider

Details about Installment Agreements

Taxpayers applying for this particular program for filing unfiled tax returns can set up payment plans that can last up to 72 months (six years). If you have already enrolled in an installment payment plan for your existing tax bill, it’s likely that you agreed to a few terms and conditions. One of those conditions was that you would need to stay current with all your future tax payments. In case you fail to file future taxes, your Installment Agreement for past taxes would default. This means that the IRS would expect taxpayers to immediately pay both their past debt as well as their new debt. Consider reaching out to a Dallas tax lawyer for IRS tax relief.

What are the possibilities of securing 2 installment agreements?

Long answer short: No, taxpayers cannot have multiple installment agreements with the IRS at the same time for the same type of liability. You could have 2 installment agreements if you owe for personal and business liabilities. However, that doesn’t necessarily mean that you would be in a grave problem in case you accrue new tax debt. There might be a way to change your current IRS payment plan terms, but that’s not always guaranteed. If taxpayers end up having a new tax debt while already being enrolled in an IA, it’s recommended that they don’t avoid paying their taxes! The IRS would not allow taxpayers to apply for a new IA. In that case, consulting an IRS attorney in Dallas, Texas, can help you learn the various options you have when it comes to changing your IRS payment plan terms to settle IRS tax debt.

Related Blog Post: Answering Top 5 Frequently Asked Questions about Unfiled Tax Returns

Do you qualify for IA with your new debt?

Here are the requirements you must fulfill to ensure that you qualify for an IRS Installment Agreement with your new debt:

  • Short-Term Individual Payment Plan: You must owe less than $100,000 in terms of tax, penalties, and interest, combined. Also, all your returns must be filed.
  • Long-Term Individual Payment Plan: You must owe a combined amount of $50,000 or less in tax, penalties, and interest. All your returns must be filed.
  • Long-Term Business Payment Plan: You must owe a combined amount of $25,000 or less tax, penalties, and interest with all of your previous returns being filed.

You must get in touch with the IRS to reapply for a modified installment agreement that includes your new debt into the balance of your existing payment plan. Remember that you must apply for it even before your taxes are due. Just in case your new balance is too large to handle in monthly installments, a Dallas IRS attorney can help you to switch to a new type of loan forgiveness program based on your total updated debt. However, for any of these instances to happen, you must file all your tax returns before opting for a modification to your IA terms.

Final word

Having unfiled tax returns can lead to overwhelming circumstances for taxpayers. That is why it’s recommended that you hire a Dallas tax lawyer with proven expertise in the field. That is where the Law Offices of Nick Nemeth can help. Over the years, we have helped thousands of taxpayers find their way out of all sorts of IRS tax-related problems. Contact us today for a completely confidential no-obligation consultation. Call (972) 426-2553 or fill out our contact form and we’ll get back to you as soon as possible.

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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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