If you have a tax debt & can’t afford to pay in full, then you can set up an IRS installment agreement. The IRS installment agreement allows you to pay your taxes over a period of months or years and will keep the IRS from attacking your bank accounts & other assets.
To qualify for an IRS installment agreement, you must file all required returns & forms, must be current with your estimated tax payments, & if you are an employer, you must be current with your federal tax deposits.
So, if you have a tax debt, you need to get in to compliance before the federal government will allow you to pay previous years taxes over time. Once your returns are filed, then you have to make estimated quarterly payments for the present year or increase your withholding to ensure you won’t owe this year. If you do owe & can’t pay, the installment agreement will be voided & all of your hard work will have been wasted.
The primary purpose of the IRS installment agreement is to allow you to pay your tax debt in full over time. However, because the IRS has only Ten years to collect from you after the tax is assessed/return(s) filed, you might not need to pay the full amount. If the 10 year collection statute expires while you are in an installment agreement, the remaining balance is eliminated & you get a fresh start.
If you’re granted an IRS installment agreement that does not pay the balance in full before the statute expires, the IRS will review your account every 2 years to check for additional income sources. They will also compare future tax returns to the financial statement submitted by you to determine if you can afford to pay more each month. Basically, you will be under constant review while in a partial pay installment agreement.
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Makemytaxes is a company which provide Tax Debt Resolution and Debt relief.Our service is to get the taxpayer immediate relief from IRS or State Tax debt relief.Find out More