If you are unable to meet your tax obligations in full, setting up an IRS installment plan is often a viable way to gradually pay off your debt to the IRS in a way that eases the financial impact to you.

Although you may be wondering why the IRS would be willing to negotiate an installment plan when it is trying to collect outstanding tax obligations, the fact is that the agency understands that it can’t collect money that a person simply does not have to give.  Therefore, the IRS may be willing to negotiate a tax installment payment plan that allows you to pay off your debt over time so that they can still recoup the money owed to the agency.  During the process, they collect interest on the outstanding balance you owe.

How Likely Is It That You Can Negotiate An IRS Installment Plan?

Although the IRS has a reputation for being difficult to deal with, the agency is still practical and they understand that sometimes they have to allow for a more logical means of collecting their money.  That’s where IRS installment plans come in.  Negotiating an installment plan is a win-win situation because the IRS recoups the money owed to the agency, including penalties and interest, while the taxpayer is able to break up the amount owed over time to make it more manageable while settling their outstanding tax obligation.

How Do IRS Installment Plans Work?

There are two types of installment plans that can be negotiated with the IRS.  These include:

  • Informal installment agreement – This is an informal agreement in which a taxpayer agrees to pay off any outstanding tax debt within two years in monthly installments.  The amount of monthly payments and terms are agreed to by both parties during the tax negotiation process.
  • Formal installment agreement – This is a written agreement between a taxpayer and the IRS in which the taxpayer agrees to make a specified monthly payment that the IRS has agreed to accept.  In this type of agreement, the outstanding tax debt may not be paid off in full within two years like in an informal agreement.

Our goal is to help you set up the best installment agreement with the IRS to meet your needs so that you can handle the monthly payments while paying off your tax debt in the shortest time possible in order to keep interest to a minimum so that your tax debt amount doesn’t continue to escalate.

How Much Can Installment Plan Terms Be Negotiated?

During the process of creating an installment plan, a taxpayer may feel that the monthly payment amount is too high or may not be satisfied with other terms of the agreement.  That’s where tax resolution specialists like the ones at People’s Tax Relief are especially helpful.  Although the IRS can be tough to negotiate with, we are experienced in dealing with them and will handle negotiations on your behalf.  For example, if the collection employee in charge of your case will not negotiate further, we can speak with the employee’s manager or can appeal the matter to the IRS appeals office, if necessary.  We have managed countless negotiations with the IRS and know just what is needed to help you achieve the tax resolution results you desire.

Interested In Finding Out More About IRS Installment Plans?  Contact Us Today!

Call People’s Tax Relief for a free, no-obligation tax consultation at 866-788-8069 or fill out the form on the side of this page and one of our experienced tax negotiation specialists will contact you.  During this consultation, we will discuss whether an IRS installment plan is your best tax negotiation option and will provide you with additional information about this effective form of tax resolution.