If you are unable to pay your taxes in full, you can typically pay via an installment agreement. If an installment agreement is pending or in force for your tax owed to the IRS or state, you are generally protected from collection actions as long as you remain compliant with the terms of the installment agreement.
As a part of the Fresh Start Program, the IRS has relaxed its rules concerning installment agreements for taxpayers who owe $25,000-$50,000 in taxes. Installment plans can be streamlined and may not require you to file a financial collection information statement (Form 433-A or 433-F). In order to qualify for a streamlined plan, a taxpayer must set up a direct debit payment. If you do not meet with qualifications for a streamlined installment agreement, we will help you complete a Form 433-A or 433-F and establish an installment agreement that way. After we review your case, we will let you know which option is right for you.
The IRS determines the amount of your monthly payments based on information provided by the taxpayer and national standards determined by the IRS. Often, collection agents may persuade unassuming taxpayers to enroll in an installment plan that falls outside of their budgets. Defaulting on an installment agreement can result in serious repercussions, and it is best to agree to an installment plan that you can afford. Mr. Frost can negotiate a payment plan that is reasonable and affordable, and can guide you through every step of the installment agreement process.