IRS Installment Agreements are one of the key methods you have by law to settle back taxes. Installment Agreements with the IRS settle your IRS problems by letting you make monthly payments on your tax bill. There is a good deal of work that goes into determining how much those monthly payments should be. That’s where we come in because our experienced attorneys can help you through this maze. What’s required for installment agreement relief? For one, you must have all your missing tax returns filed before the agreement becomes effective.
The Installment Agreement might be one that pays all of the overdue tax or it may pay only a part of the overdue tax. Frequently, when you attempt to have an Installment Agreement with the IRS, you encounter a conflict of interest. On the one hand, the IRS has an interest in collecting the overdue taxes in full as fast as it can. On the other hand, you certainly want and need an amount that fits your budget. Here is where our expertise at ChicagoTaxLawyerFirm.com can really help!
The Good News
The good news? When you have in place an Installment then all IRS collection efforts will stop. Just think, no more of those certified letters of demand, no more bank levies or wage garnishments or late notices. The IRS also stops distressing phone calls. However, the IRS may file a notice of tax lien on your property, just to protect itself. One financial drawback to Installment Agreements is that penalties and interest will mount on the balance of back taxes while the Installment Agreement is in place.
Once the Installment Agreement is in place, you must keep up with all tax filings, make sure you file your returns on time and make your payments on time. The Installment Agreement is a great tool where you cannot afford to lump-sum even a reduced portion of the tax due. Contact us today to see how an Installment Agreement may work for you.