Installment agreements, also known as payment plans, are an IRS program that's available if you can't pay the amount you owe in full at once but could pay it back over time. It allows monthly payments of the taxes you owe with a payback period of up to six years.
Once the plan is established, all IRS collection actions including bank account levies, wage garnishments, and property liens come to a halt. Please note that interest does still accrue in the payment plan. The main obligation is that the taxpayer remains current with tax payments and timely filing of all subsequent tax returns.
If you owe less than $50,000, the Installment Agreement is straight forward. If you owe over $50,000, the IRS will require financial information such as your income, bank balances, retirement accounts, and other assets to determine that the full balance cannot be paid off at once. We can negotiate with the IRS for a reasonable monthly payment term.
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