Your Best Bet: Installment Agreements

If you have IRS problems that include tax debt, a good solution might be an installment agreement with the IRS. The essential thing to remember is that you must be current on this year's tax returns and you must have filed all your past due tax returns to be eligible for an installment agreement.

With an installment agreement, you don't need to pay the debt in full. You just need to fulfill your end of the terms of agreement and make regular monthly payments and the rest of your debt is forgiven.

A debt of more than $25,000 will need negotiation with the IRS, but an installment agreement plan for 60 months is standard for figures less than that.

You must find out exactly how much you need to pay in unpaid taxes. Request the information from the IRS if you do not have copies of your tax returns. Remember that the figure you owe includes the penalties and interest that's been accruing.

You must to fill out two forms to request for an installment agreement - an Installment Agreement Request form (Form 9465) and a Collection Information Statement form (Form 433-A). Along with the forms, include 3 months' worth of documentation showing income and expenses and a letter requesting for an installment agreement. An experienced IRS Problem Resolution professional can help you prepare the documents and determine how much you can afford to offer for the monthly payment. It takes around 30 days for the IRS to respond.

It is important for you to know that even while you are making payments on an installment agreement, the interest and penalties on your unpaid taxes will continue to accrue.

After you have received the go signal from the IRS, make it top priority to send the payments each month. Your options will be to pay by check, money order, credit card, EFTPS (Electronic Federal Tax Payment System), or automatic withdrawals. Money orders and checks might go missing, so it's best to go for automatic or electronic methods.

Visit our firm if you have IRS problems. No IRS problem is beyond us, from paying your tax debts with an installment agreement to negotiating with the IRS.

Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. If you have an IRS Problem and need IRS help then contact him immediately. He can be reached at his website at http://www.getIRShelp.com or tollfree at (888) 438-6474.