Installment Agreement
Pay your back taxes over time, Stop IRS Collection activity.
You may be able to pay your taxes in monthly installments. If an Installment Agreement is accepted then IRS collection activity ceases so long as the installment payments are timely made. However, acceptance of your installment agreement request is not automatic. In addition, there may be technical requirements relating to the amount of the tax debt that you owe. You may also may be required to complete Collection Information Statement Form 433F.
Before requesting an Installment Agreement, you should take into account the extent and availability of other assets. This is because the IRS will consider whether or not you can pay the tax debt from current assets. An attorney can explain your situation and argue why installment agreement is in the best interest of both you and the government.
Unfortunately, taxpayer sometimes wind up with monthly payments greater than they can afford causing a financial hardship. If a taxpayer should default on an installment agreement, the IRS will begin collection activity again. For this reason it is important to carefully consider a taxpayer's ability to continue making installment payments.
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