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Installment Agreement

Do you owe back taxes to the IRS, but can't pay the entire debt today? It might be possible to set up a payment plan to pay your taxes over time.  In general there are three options allowed by federal statute.

1.  An Installment agreement for a taxpayer who owes less than $50,000 including interest and penalties.  You will set up a monthly payment schedule to pay your outstanding tax debt in full.  Penalties and interest will still accrue, but at a lower rate than if you did not have a payment plan in place. 

2.  For individuals who owe more than $50,000 including interest and penalties, you may qualify for a monthly payment plan, but will be required to submit a financial statement.  We can assist you in preparing this statement and providing documents to substantiate your request.

3.  If your business owes $25,000 or less in back taxes, you may request an “In-Business Trust Fund Express” installment agreement (IBTF-Express IA).  An IBTF-Express IA payment plan usually doesn’t require a financial statement, although the business must currently have employees.  An IBTF-Express IA grants you a 24-month period to fully pay the outstanding tax debt. If the amount owed is greater than $10,000 but below $25,000, your business must set up a Direct Debit installment agreement (DDIA). 

Call or email us today for more information.  We can discuss whether any of these options might be available to you. 


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