If you've fallen behind on your taxes or owe a large amount for the most recent tax year, you may consider setting up an installment agreement. However, you will continue to accrue penalties and interest until the entire balance is paid off. You will also have to pay a nominal fee for engaging in a payment plan and will be required to fill out various forms. The following is a list of the four types of installment agreements offered by the IRS:
Guaranteed Installment Agreements
Guaranteed Installment Agreements
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Balance Due = $10,000 or less
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You haven't filed late or paid late in the past 5 years
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All tax returns have been filed
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Repayment period is less than 36 months
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You've had no other installment agreement in the past 5 years
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You agree to file on time and pay on time in the future
Streamlined Installment Agreements
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Balance Due = $25,000 or less
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Repayment period is less than 60 months
Partial Payment Agreement
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Payments are based on what you can afford after considering essential living expenses
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May cover a longer repayment period
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Additional paperwork is required
Non-Streamlined Installment Agreements
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Balance Due = $25,000 or more
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You need longer than 5 years to pay the balance
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You do not meet the requirements for the Streamlined or Guaranteed payment plans
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Additional paperwork is required
Please contact our office if you have any questions regarding IRS installment agreements.
