The IRS recognizes that some taxpayers just need a little time in order to resolve their tax debt. The IRS installment agreement is designed to help you pay down the amount you owe over a period of 10 years or less. It is one of the most popular forms of assistance the IRS offers taxpayers, and you can even set it up as an automatic monthly debit payment. We can help you.
Installment agreements will also combine amounts owed from multiple tax years so that you have only one tax payment due each month. The downside is that penalties and interest continue to accrue on your debt during your payment plan, so you will end up paying more in total than you would by settling the debt sooner and in full.
You do have the option to pay down your debt more quickly, however, and when making payments you can choose the tax year to which they will be applied. For instance, you can direct your payment be credited to a tax year for which you owe more rather than one for which you owe less if you like, saving money on interest or penalties over time.
An IRS representative will determine your monthly payment amount based on the total of taxes, interest, and penalties owed. It will also be based on the amount you need to pay to resolve the debt within a reasonable amount of time, generally 10 years. Representatives may also be able to adjust the payment amount if it's too high for your current income.
If you still can't afford the payment amount after working with an IRS representative, you can also appeal the decision and ask for a review of your specific circumstances.
Let our attorney at the J. Gannon Helstowski Law Firm assist you in deciding what is the best option for you. We can represent you against the IRS so you do not have to deal with them directly.