Establishing an Installment Agreement with the Internal Revenue Service (IRS) is one of the primary methods of resolving Federal tax debt. Many taxpayers are unable to full pay their Federal tax liability in a single lump sum. An IRS Installment Agreement enables those taxpayers who are unable to full pay their liability to pay down their debt over a period of time. Generally, Installment Agreements last between 24 and 72 months.
The amount of your monthly payment is based on your specific financial situation. Typically, the IRS requires that the entire tax liability be paid in no more than 72 monthly payments. If, however, payment in 72 months or less would create a financial hardship, then the IRS will allow the taxpayer to pay less.
To qualify for an IRS Installment Agreement you must be in compliance with your filing requirements. This means that you must have filed ”Ability to pay” demands that the taxpayer has a source of regular income and that the income exceeds the taxpayer’s monthly expenses. ”Compliance with filing requirements” demands that the taxpayer must have no delinquent tax returns for all tax periods at issue.
AB Tax Law has arranged for millions of dollars in past due Federal taxes to paid through IRS Installment Agreements. Our experience and knowledge allows us to help our clients to minimize their monthly payments and total repayment. To discuss your tax issues and the availability of an installment agreement, contact AB Tax Law today.