The IRS allows taxpayers to pay off tax debt through an installment agreement; nevertheless, it is in the taxpayers’ best interest to pay taxes immediately to evade the penalties and interest.
If paying the entire tax debt all at once is not possible, an installment agreement is an alternative allowed by the IRS. The IRS has four different types of installment agreements:
1. Guaranteed Installment Agreement (GIA)
If you have tax debt, a GIA is the easiest installment plan to get. In fact, as long as you meet the basic requirements, it’s guaranteed by law.
To qualify for a GIA, these conditions have to be met:
This payment plan does not allow the IRS to file a federal tax lien against the taxpayer. Furthermore, financial disclosure is not required.
2. Streamlined Installment Agreement (SLIA)
The qualification conditions for the GIA and SLIA are similar; the specific conditions for a SLIA are as follows:
A setup fee is compulsory and payable by the taxpayer. This will be used in setting up the installment agreement. Alternatively, a reduced fee can be paid for a direct debit installment agreement. In addition, a different fee is payable for reinstating or restructuring an existing installment agreement. Lastly, the IRS does not file a tax lien and financial disclosure is not needed.
3. Partial Payment Installment Agreement (PPIA)
In some cases, it is difficult to pay the tax debt in full. The IRS can allow the taxpayer who has due tax liabilities to enter into what is known as a Partial Payment Installment Agreement. In short, the debtor will have to agree to make monthly payments to the IRS until the CSED, after which whatever balance has remained will be forgiven.
In order to qualify for PPIA, one must:
Finally, completing a Financial Disclosure Statement is required and the IRS may file a tax lien against the debtor.
4. Non-Streamlined Installment Agreement (NSIA)
In instances where the taxpayer owes between $50,000 and $250,000 and is financially capable of paying off the debt in monthly installments, then their only option might be a Non-Streamlined Installment Agreement.
And finally, unlike a GIA and a SLIA, the IRS will file a Notice of Federal Tax Lien against the debtor and will require the debtor to file a Financial Disclosure Statement.
Circumstances resulting to Revoking an Installment Agreement
The circumstances listed below may warrant the cancellation of an installment arrangement by the IRS;
Having Issues Paying Your Taxes? We can help
We have helped many settle their tax debts for a fraction of the amount owed. We stop wage garnishments, levies, property seizures, and unbearable monthly payments. We can significantly reduce your tax debt. Contact us at Ultimate Tax Relief.
CONTACT INFORMATION
Phone: 800-674-4449
Email: info@ultimatetaxrelief.com
Address: 9458 Lanham Severn Road, Lanham, Maryland 20706