An installment agreement, can vary in difficulty depending on your specific circumstances. Here are some factors that can affect the process:

Amount Owed

Generally, if you owe less than $10,000, you may qualify for a streamlined installment agreement where the IRS is more likely to approve your request without requiring extensive financial disclosures.

Financial Situation

The IRS will assess your ability to pay based on your income, expenses, assets, and overall financial situation. They may request financial information such as pay stubs, bank statements, and details of your monthly expenses to evaluate your ability to make payments.

Tax Compliance

It’s important to be current with all required tax filings. If you have unfiled tax returns, you’ll need to file them before the IRS will consider your request for an installment agreement.

Type of Agreement

There are different types of installment agreements:

• Streamlined Installment Agreement**: Available if you owe less than $50,000 and can pay off the debt within 72 months (6 years) through monthly payments.
• For taxpayers who owe more than $50,000 or need more than 72 months to pay off their debt. This may require more detailed financial disclosure and approval from the IRS.

Payment Terms

The IRS will typically require you to agree to certain terms, such as making timely monthly payments, keeping up with future tax obligations, and possibly allowing the IRS to take enforcement actions if you default on the agreement.

Application Process

You can apply for an installment agreement online using the IRS Online Payment Agreement tool, or you can submit Form 9465, Installment Agreement Request, by mail. The IRS will review your request and notify you of their decision.

Professional Assistance

If you find the process overwhelming or if you owe a significant amount, consider seeking help from a tax professional or accountant who can assist you in preparing your request and negotiating with the IRS on your behalf. That’s where we come in. Contact us to start the process.

Key Information

Overall, while obtaining an IRS tax payment plan can involve paperwork and providing financial information, many taxpayers are successful in setting up installment agreements that allow them to pay their tax debt over time. Being prepared, providing accurate information, and complying with IRS requirements can improve your chances of getting an installment agreement approved.