IRS Installment Plans & IRS Payment Plans

Paying Back the IRS

If you have incurred federal tax debt that is too large for you to pay all at once, an experienced tax relief attorney can approach the IRS on your behalf in order to negotiate an installment plan.  IRS installment plans (also known as IRS payment plans) allow you to pay the full amount of your tax debt in smaller, more manageable amounts.  

• The downside of using payment plans for back tax help is that the interest and penalties associated with your debt will continue to accrue for the duration of your plan. 
• Ongoing penalty accrual can result in interest rates of up to 8% - 10% per year. 
• This is why an experienced IRS debt attorney, such as Kenneth Sheppard, will recommend making larger monthly payments over a shorter period of time. 

1. No Asset/No Equity
2. Asset/Equity

No Asset/No Equity
Under this agreement, the IRS finds that you have no assets and/or no equity in your assets, or that you have liquidated all of your available assets in order to make a partial payment of your tax debt.  Your tax relief attorney can help you provide evidence proving you qualify for this agreement.

Asset/Equity
Under this agreement, the IRS finds that you have minimal equity, are unable to utilize your equity, or are unable to sell your asset because it is unmarketable despite a high book value.  A fourth scenario is also acceptable under the Asset/Equity agreement, which is that you need your asset in order to generate income for the partial payment installment agreement.  If the IRS determines that the government will receive more from the future income generated by the asset than from the sale of the asset, they will not seize and sell it.

How the IRS Evaluates Eligibility for Partial Payment Installment Agreements

If your financial situation is such that you cannot afford to pay off your taxes in full at the time they are due, the IRS will review your circumstances to determine your eligibility for an installment agreement.  It is best to hire a tax debt attorney at this point so that you can obtain the most favorable outcome possible.  Remember:  even if the IRS agrees that you had legitimate reasons for defaulting on your initial tax liability, they are not likely to wave any penalties associated with your debt, unless an experienced IRS tax attorney negotiates on your behalf.

Secure your right to negotiate an Installment Agreement with the Internal Revenue Service. 

Call Tax Attorney Kenneth Sheppard today at 1-877-505-9455 for a free case evaluation.