Negotiate an IRS Installment Agreement (Payment Plan)

An Installment Agreement is a payment arrangement in which the IRS permits a taxpayer to pay delinquent tax liabilities over time. Once an Installment Agreement is established, the IRS will refrain from engaging in enforced collection action, including the levy of bank accounts or wages, while the taxpayer remains current with all future tax filing and payment obligations. However, interest and penalties continue to accrue on the outstanding balance of the tax liability until the liability is paid in full.

Federal Tax Lien Filing

Although the IRS will refrain from levy action against bank accounts and wages, or seizing taxpayer property, the IRS may file a federal tax lien to secure compliance with the installment payment arrangement. The IRS views a tax lien as a “passive” collection device because it does not cause the immediate seizure of taxpayer property, but merely acts to secure taxpayer compliance with the installment agreement payment arrangement. It is our general experience that the earlier taxpayers contact us for help, the better our chances at preventing a lien filing. Don’t wait for the IRS to put a huge dent in your credit.

Can I Set Up an Installment Agreement Myself?

Negotiation of an Installment Agreement is often difficult for individual taxpayers and requires substantial knowledge about IRS guidelines and regulations. Determination of the minimum monthly installment payment that will be acceptable to the government 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 that IRS Revenue Officers will use to evaluate your installment offer and proposed payment amount.

If the IRS is demanding immediate full payment or a payment plan that is higher than what you can afford to pay, call IRS Problems Resolved toll-free at (855) 895-1892 for a FREE consultation to discuss your options. We have substantial experience helping taxpayers negotiate the lowest possible monthly payment with the IRS. We can also work with state taxing authorities to negotiate payment plans for you, if installment agreements are offered in your state.