What is an Installment Agreement?

An Installment Agreement is one of the Internal Revenue Service (IRS) Fresh Start Initiative Resolution Programs. Those who have successfully proven that they cannot afford to repay their tax bill entirely may be eligible for the installment agreement plan. 

An Installment Agreement is a payment plan which allows a taxpayer to pay an agreed amount monthly. These payments go to the total IRS tax debt balance and continue to pay until the taxpayers pay the tax liability in full. 

What is the minimum monthly payment for an  Installment Agreement?

The minimum payment will be the balance due divided by 72 months for balances between $10,000 and $25,000. If a taxpayer can’t afford to pay the installment amount the IRS is requesting, the taxpayer can request to speak with the IRS collections manager and get an adjusted payment plan. If the IRS collection employee’s manager isn’t able to adjust the installment agreement the taxpayer can appeal the matter to the IRS appeals office. 

 

Benefits of an Installment Agreement plan?

1. Avoid Further Penalties

2. Help your credit 

3. Ensure future refunds 

How long is an IRS Installment Agreement Plan?

IRS payment plans last 6 years. FiIl out form 9465, Installment Agreement Request the IRS will set up a payment arrangement for you. 

Next Steps

If you’re interested in seeing if an Installment Agreement is best for you or would like to see if Fresh Tax Solutions can renegotiate your current Installment Agreement, give us a call at 866.211.7375