IRS Installment Agreements

IRS installment agreements are monthly payment plans set up to pay back the taxpayer’s tax liability. The IRS has guidelines as to what amount they will accept and the time frame they will accept it in. Internal Revenue Code requires IRS to enter into installment agreements to accept payment of tax liability if:

1. The aggregate tax liability is $10,000 or less;

2. The taxpayer has not, in the preceding five years, failed to file any federal income tax return, failed to pay any federal income tax liability, or entered into an installment agreement for payment of any income tax liability;

3. The IRS has determined (based on the info provided by the taxpayer at the request of the IRS that the taxpayer is financially unable to pay the tax liability when due;

4. The agreement provides for full payment of the tax liability within three years; and

5. The taxpayer agrees to comply with the Internal Revenue Code during the time the agreement is in effect.

This is a very complicated and difficult process and should be carried out by a tax attorney to ensure the taxpayer receives the best chance at reducing past debts.

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At Guzhva Law Firm we are providing thoughtful solutions and measurable value to each individual situation. Because U.S. tax law and regulations are complicated and constantly changing, it is important that you obtain up to date information about the provisions that apply to you to prevent costly mistakes.

To schedule a free phone consultation with an IRS collections attorney, please contact us today. With offices in Bellevue, we work with tax clients throughout Seattle and Washington State, and elsewhere.