An Installment Agreement is a payment arrangement negotiated with the IRS wherein the IRS allows you to repay your tax debt over a period of time, usually no more than 60 months. Once an installment agreement is established, the IRS will stop collection efforts against you, including the levy of bank accounts and wages. Keep in mind, though, that interest and penalties will continue to accrue on the outstanding balance during the installment payment period. But if you are unable to make a lump sum payment, an installment agreement may be your best option.
Determiningthe minimum monthly installment payment that will be acceptable to the IRS depends upon the application of specific IRS income and expense standards to the specific facts of the case. These regulations and guidelines include IRS local and national standards for allowable expenses. You will also need to file any delinquent returns before being approved for an installment agreement. Furthermore, you will need to keep current on future tax obligations. Otherwise, your installment agreement may be revoked.
Copious amounts of paperwork will also have to be provided to the IRS. The amount varies depending on the tax debt and the period of time over which the installment agreement will run.
Call or email Moretsky Law today to determine whether you qualify for an installment agreement and what other options are available to you. Having an experienced attorney on your side to ensure compliance with the IRS’s requirements is critical when attempting to work out an installment agreement. You probably know the old adage, “You can’t get blood from a stone.” Well, the IRS doesn’t necessarily adhere to this logic. The IRS is not concerned with questions such as “where will I live if my house is foreclosed on?” or “how will I pay my bills if my bank account is frozen?”
If you do not have enough income for an installment plan, you may qualify for Currently Not Collectible status. This means that you may be able to stop IRS collection actions against you. Under Non-Collectible status, the IRS will suspend collection efforts for a period of time and release any levies already in place. This will buy you time to get your finances in order without the looming threat of the IRS foreclosing on your house, garnishing your bank accounts or wages or using some other tool in its arsenal to collect monies from you.
Contact Moretsky Law for a free and confidential consultation to determine the best course of action. I will personally work with you and guide you through the process to ensure the best course of action depending on your individual circumstances. Unlike many law firms where your interactions are limited mainly to a secretary or paralegal, I work with you personally and am available to speak with you any time you have questions or concerns.
Call 215-344-8343 or contact me by e-mail to arrange your free consultation with a Montgomery County tax defense attorney.
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