IRS Installment Agreement Basics
Let's take a minute to go over the basics of the most common resolution strategy for those taxpayers owing money to the Internal Revenue Service -- the installment agreement.
If you owe money to the IRS an Installment Agreement may be a good option for you. An IRS installment agreement allows you to pay your tax debt much like you make payments on your credit card. Interest continues to accrue, but if you make the monthly payment you don’t have to worry about collection action like wage garnishments or bank levies.
Keep in mind there are a few downsides to the installment agreement:
- Penalties and Interest Continue to Accrue
- If you owe more than $50,000 or are unable to pay off your debt within 84 months the IRS will file a tax lien, and
- Any tax refunds you are due will be retained by the IRS until the liability is paid in full.
I hope this information has been helpful. If you need help establishing an IRS installment agreement or have other tax issues feel free to reach out to me by telephone or the contact form on this page.