Making an Installment Agreement With the IRS
The Internal Revenue Service does offer taxpayers who have fallen behind in their tax debt the option of making installment payments.
First, determine if an installment arrangement is what you need.
If you only need a couple of months to come up with the money in full, you may be able to get that through an extension.
If, however, you are so far behind that you need to make a deal, an installment plan may be just what you need.
Beyond the money you already owe the IRS, there are fees to be considered in making an installment negotiation with the Internal Revenue Service.
There is a $105 user fee that can be reduced to $52 if you agree to make automatic payments through your bank.
You can get this fee further reduced, to $43 based upon the Department of Health and Human Services poverty guidelines.
As well, keep in mind that there is a $45 cost to reinstate a defaulted installment agreement.
Even though you have made an agreement to pay the Internal Revenue Service in installments, they might insist on a lien against your home or other property.
The lien is a means the Internal Revenue Service seeks to guarantee that you will pay off your installment plan in full.
A federal tax lien could result in problems with your mortgage company and will definitely impact your credit rating in a negative manner.
If, after considering all your options, you decide to move forward with an installment plan, you can file directly on-line with the IRS, as long as your total debt is $25,000 or less.
If your Internal Revenue Service debt is greater than $25,000, you will have to fill out Internal Revenue Service form 433F, a Collection Information Statement.
Once you have registered and filled out the necessary forms, it is simply a matter of waiting to hear from the IRS.
Take heart, they are not going to forget about you.
Installment agreements are not always the best way for a taxpayer to resolve back tax issues with the Internal Revenue Service.
It is good advice to seek out a tax resolution professional.
Tax resolution firms can help you determine the best way for you to settle your unique situation with the Internal Revenue Service.
They are specialized and experienced when it comes to handling back tax claims.
They will discuss options with you and can help you to decide what is in your best interests in regard to disputes with the IRS.
First, determine if an installment arrangement is what you need.
If you only need a couple of months to come up with the money in full, you may be able to get that through an extension.
If, however, you are so far behind that you need to make a deal, an installment plan may be just what you need.
Beyond the money you already owe the IRS, there are fees to be considered in making an installment negotiation with the Internal Revenue Service.
There is a $105 user fee that can be reduced to $52 if you agree to make automatic payments through your bank.
You can get this fee further reduced, to $43 based upon the Department of Health and Human Services poverty guidelines.
As well, keep in mind that there is a $45 cost to reinstate a defaulted installment agreement.
Even though you have made an agreement to pay the Internal Revenue Service in installments, they might insist on a lien against your home or other property.
The lien is a means the Internal Revenue Service seeks to guarantee that you will pay off your installment plan in full.
A federal tax lien could result in problems with your mortgage company and will definitely impact your credit rating in a negative manner.
If, after considering all your options, you decide to move forward with an installment plan, you can file directly on-line with the IRS, as long as your total debt is $25,000 or less.
If your Internal Revenue Service debt is greater than $25,000, you will have to fill out Internal Revenue Service form 433F, a Collection Information Statement.
Once you have registered and filled out the necessary forms, it is simply a matter of waiting to hear from the IRS.
Take heart, they are not going to forget about you.
Installment agreements are not always the best way for a taxpayer to resolve back tax issues with the Internal Revenue Service.
It is good advice to seek out a tax resolution professional.
Tax resolution firms can help you determine the best way for you to settle your unique situation with the Internal Revenue Service.
They are specialized and experienced when it comes to handling back tax claims.
They will discuss options with you and can help you to decide what is in your best interests in regard to disputes with the IRS.