Has your tax debt grown to the point of overwhelming you? If paying off your tax debt all at once is out of your reach, don’t panic. There are other alternatives to paying off your IRS taxes. By applying for an IRS tax installment agreement, you can actively reduce your debt and escape financial stress. The Law Offices of Nick Nemeth help taxpayers looking to get relief from tax debts through various IRS Tax Instalment Agreements. Here is a look at the different types of IRS Tax Instalment Agreements for which you can opt.
What is an IRS tax installment agreement?
An IRS tax installment agreement allows you can split a huge tax debt into smaller payments. This makes paying your tax debt less daunting and rough on your personal finance. The best part is that by coming up with an agreement with the IRS, you won’t have to face the consequences that come with failure to pay. If you owe a large amount of money that you simply can’t afford to pay, you should consider IRS tax installment agreements. There are several types of installment agreements you can apply for depending on your situation.
The Types Of IRS Tax Installment Agreements:
Guaranteed IRS Tax Installment Agreement
Do you owe less than 10,000 dollars to the IRS? In that is the case, you most likely qualify for a guaranteed tax payment agreement. However, you must also meet some other eligibility criteria. This includes: filing all previous tax returns, not having an IRS tax installment agreement in the previous 5 years, and be able to liquidate your debt, using the agreement, within 3 years max. A detailed financial statement isn’t necessary. You can easily apply online if you meet the criteria above.
Streamlined IRS Tax Installment Agreement
If you are working for an option to work out a larger IRS tax debt, a streamlined agreement might be an option. This type of agreement is a great installment agreement for those meeting the condition of owing under 50,000 dollars. Like a guaranteed installment agreement, qualification criteria are clear and simple. This makes qualifying a fairly easy for most. In this case, you’ll have up to 6 years to make payments toward your debt and finally pay it fully!
Non- Streamlined IRS Tax Installment Agreement
But, what happens you owe the IRS some serious cash? We are talking over 50,000 dollars here. If this is your case, don’t give up just yet. There are still some IRS tax installment agreement options available for you. The solution you are looking for could be a non-streamlined agreement.
To apply for this type of agreement you will have to provide the IRS with a financial statement. This way the IRS can evaluate your case and determine whether you are a candidate for the agreement. You’ll be expected to pay off the debt as soon as possible, according to your personal situation.
Non-streamlined agreements aren’t as straightforward and easy to apply for. If you are considering this option as a solution to your tax debt, make sure to consult with an expert. You can get a free consultation at Nick Nemeth’s Tax Law Offices.
Related Blog: Solving Payroll Tax Problems for Companies
Partial Payment IRS Tax Installment Agreement
Getting this type of IRS agreement approved might be hard, but if paying your tax debt is simply out of the question in your situation, it is worth a shot. With this type of IRS tax installment agreement, the IRS will agree to a partial payment of the tax liability.
Keep in mind though, that in this case, your financial situation will be assessed every two years. This is done to determine whether your situation has improved, making you more apt to pay your debt. Additionally, the IRS will investigate if you have any assets that can be sold to pay off your debt. As with the previous type of installment agreement, providing a financial statement. Since the process is more complex, you can greatly benefit from the assistance of a tax law pro.
Applying For An IRS Tax Installment Agreement
The Law Offices of Nick Nemeth, PLLC, has a team of tax attorneys that can help you with all your IRS tax debt problems. We help you find the best solution for your situation and guide you through every step of the process. When it comes to dealing with the IRS, you don’t want to get lost in the technical lingo and procedural maze. Instead, set yourself up for success by hiring professional help with years of experience dealing with the IRS! Call us at (972) 627-4580 and schedule your free consultation.