An installment agreement (IA) is one of the most common method for individuals to arrange payment for back taxes owed with the IRS. Even if you are filing your taxes and know you cannot pay the entire amount owed, people typically send in the installment agreement form with their tax return. IRS installment agreements are typically easy to obtain when the tax amount owed is under $25,000, but can be a bit harder to obtain with amounts over that. Make sure you have money left over after your living expenses are figured out to pay for an Installment Agreement, otherwise it is not worth spending your time pursuing. Realize that an IA can get a levy released but you may also qualify for an Offer In Compromise, Penalty Abatement, Uncollctible Status, bankruptcy and so on. A tax lien generally was more prevalent before this year when the IRS decided generally to withdraw or not file a tax lien if the taxpayer sets up a Direct Debit Installment Agreement or Installment Agreement that requires monthly payments be deducted directly from their bank account.
If you would like to pursue an installment agreement with the IRS please call our office for a free consultation to learn of your options.