The IRS might be one of the most feared authorities in the US, but that, however, does not mean that it is blind to the concerns of the people. While the tax authority is known for taking no hostages when it comes to compliance, it does have more than a few provisions for distressed taxpayers, who, despite their intent and the best of efforts, are unable to meet their tax obligations. The IRS Installment Agreement is one such provision. If you are considering it to find your way out of a tax debt spiral, this article is for you. Read on as we present some of the key benefits of the IRS Installment agreement.
Avoid Bank and Wage Levies
If a taxpayer is unable to pay their taxes, the IRS has the authority to seize their bank account or wages, to collect the outstanding amount. Having said that, those who apply and are accepted for an IRS payment plan do not have to worry about any levies, as long as they keep making the agreed upon monthly payments to the IRS.
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Get Rid of Years of Tax Debt
Requesting an IRS installment agreement makes perfect sense for those who owe taxes for multiple years. An installment agreement allows taxpayers to pay off multiple years of tax debt through unified monthly payments. It is, however, important for taxpayers to have a tax attorney request their tax transcripts from the IRS, to determine the amount they owe.
Buy More Time to Pay
If a taxpayer is able to present a convincing case to the IRS and qualify for an installment agreement, they get up to 6 years to pay off their tax debt. In cases wherein a taxpayer believes they can pay off the liabilities in a shorter span of time, they have the option to either make a down payment or increase the monthly payment amount.
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Avoid Tax Liens
The very sight of a Notice of Federal Tax Lien is enough to make anyone go weak in the knees. The good news is, qualifying for an IRS installment agreement implies that the taxpayer might be able to request a withdrawal of the Notice of Federal Tax Lien, if their payment plan meets some requirements.
Being unable to meet the tax obligations is enough to distress even the most unshakeable of people, but they must keep in mind that, with the right approach, no mountain is too high to climb. If you have been unable to pay your taxes and are looking for a way out, talk to the IRS tax lawyers at The Law Offices of Nick Nemeth, to learn more about the IRS Installment Agreement and other such provisions. To schedule your FREE confidential consultation in Dallas, Fort Worth, Houston or anywhere else in Texas, simply call (972) 426-2553, or fill out the Free Case Evaluation Form and we’ll take it from there.