Paying Off IRS Debt With Installment Agreements


Posted on February 28, 2019 |

You can’t pay your taxes. You are racking up penalties and interest and it’s gotten to the point where you know you are going to need the help of a New Jersey tax lawyer to negotiate some kind of payment plan with the IRS.

Before you set up an appointment with a tax advisor, here is some general information about IRS installment agreements that might help you frame your questions at that first appointment.

What Makes You Eligible For an IRS Installment Agreement?

If you can’t pay your debt within 120 days of its coming due, you may be able to pay in installments.

Your chances are pretty good that the IRS will be amenable to an installment agreement if you are able to pay off the taxes due plus interest within the collections statute of limitations time period. In some instances you can even get a few more years to pay, but this depends on the specific details of your case. Your New Jersey tax lawyer will be able to explain if this is something you can pursue or even if your account is one that the IRS might classify as uncollectable.

Guaranteed Installment Agreements

Unless you have unusual circumstances, the IRS will accept an installment agreement if your tax liability is less than $50,000, you’ve been compliant with filing tax returns and paying what you owe for the previous five years, you promise to keep all future tax payments current, and you can pay off what you owe in installments over the next three years

Streamlined Installment Agreements

If you qualify under the guaranteed installment agreement criteria, you my also be able to get a streamlined installment agreement. Your tax liability, interest and penalties must not exceed $50,000; you must be able to pay off the balance in 72 months; and the proposed payment must be equal to or greater than the greater of $25 or the minimum payment amount reached by dividing what you owe by 50.

Of course installment agreements with the IRS contemplate that you are going to be able to make good on the payments. If you are self-employed or own a business, you are going to have to show the IRS that you have the resources to continue to operate your business. If it looks like you won’t be able to make regular installment payments based on business circumstances, the IRS might go ahead with collections actions.

There is also the possibility that your tax attorney could persuade the IRS to waive the statute of limitations for collections and even accept partial payments over an extended period of time.

Contact New Jersey Tax Attorney Kevin Thorn to Learn More About IRS Installment Agreements

Falling behind on paying your taxes happens to the best of people. It can be stressful trying to figure it out on your own. Thorn Law Group’s New Jersey tax lawyers can walk you through different scenarios to solve your back tax payment problems to help you find a solution that will work for you and will be acceptable to the IRS.

Contact us online or call our New Jersey office at 201-842-7692 for an appointment today.

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