Pearson Butler will work for you: Installment Agreements
If your tax debt to the IRS is large, there are a variety of tax relief options that will help you to repay your debt and reduce your stress. Pearson Butler can help you find the best solution to your tax debt and will negotiate the best arrangements for you. You don’t need to worry about wage garnishments or tax liens once we are working on your case. Tax debt will no longer seem impossible, and you will be able to overcome your debt. One such option for tax debt relief is an installment agreement.
What is an installment agreement?
An installment agreement is a contract between you and the IRS to pay back your debt in monthly payments, much like monthly payments for other forms of debt like credit cards or loans. Installment agreements will allow you to repay your debt over time and make your finances much more manageable. Installment agreements are a good choice for people who do not meet the requirements for other tax debt relief options like an offer in compromise.
How do I qualify for an installment agreement?
The IRS must agree to a standard installment agreement if you have never had one before and you owe less than $10,000. You must have paid your taxes on time for the last five years. In order to get an installment agreement in this case, you must stay current on your tax payments and pay off your debt in monthly installments in less than 36 months. If you owe less than $10,000, we can help you fill out a Form 9465 and submit it to the IRS.
If your tax debt amounts to less than $25,000, you can qualify for a streamlined installment agreement. This agreement will require you to pay off your debt in monthly payments over the course of 60 months or less. As a result of the 2012 ‘Fresh Start Initiative,’ you can also qualify for a streamlined installment agreement if your tax debt is less than $50,000, as long as you can pay off your debt within 72 months. In both cases, we can help you fill out a Form 9465 and submit it to the IRS. You will also have to submit all of your future tax returns on time in order to qualify for a streamlined installment agreement.
If you are unable to pay the minimum payments for a standard or streamlined installment agreement, a partial payment installment agreement may be a better choice. Required payments for partial payment installment agreements are based on your income and not just on how much you owe. A partial payment installment agreement will take longer to pay off your debt and is more complicated to file with the IRS, but is a good choice if your income is low. We can help you fill out a form 9465 as well as a Form 433-F and submit them to the IRS. Form 433-F includes information on your monthly income as well as your living expenses and other financial information. Submitting a Form 433-F requires supporting documents to validate your claims including paystubs and bank statements. If your petition for a partial payment installment agreement is approved, the IRS will review your financial situation every two years to determine whether your financial circumstances have changed.
A non-streamlined installment agreement is available to people who owe less than $25,000, need to repay over a period of more than five years, and don’t qualify for a streamlined installment agreement. Non-streamlined installment agreements require negotiating with an IRS agent directly which can be extremely complicated. A non-streamlined installment agreement also requires a Form 433-F, which will be used to help determine the amount you are able to pay. However, the IRS will also file a lien against you and urge you to sell off your assets to avoid settling on a non-streamlined installment agreement. We can help you sort out the complicated and stressful process of negotiating a non-streamlined installment agreement.
How are monthly payments for installment agreements determined?
Monthly payments for installment agreements for debt under $10,000 are determined by dividing your total debt by 30. This number is your monthly payment and will include total interest and penalties that you have accrued. Similar circumstances occur for debts of less than $25,000 and $50,000. For a partial payment installment agreement, payments are based on your monthly income and expenses.
Why work with an attorney during an installment agreement?
Tax debt can have very serious, life-changing consequences if not handled and resolved properly. Due to the complicated nature of tax law, it is difficult to learn all of your options and know what solutions are best for you. Working with an attorney can provide you with an easy and stress-free solution to an otherwise complicated and serious problem. Attorneys can prevent drastic measures from being taken against you, such as wage garnishment and liens.
Tax attorneys are recommended over other tax professionals because tax laws are complicated and frequently change. Individuals attempting to negotiate personally with the IRS will face a mountain of complicated paperwork and a maze of bureaucracy to navigate. An attorney will ensure you are making the most of the laws available to help you, and ensure that you can arrive at a solution that will allow you to lead a normal life and become debt free.
If you owe more than $10,000, the process of successfully securing an installment agreement can be quite complicated. Every case of tax debt is different. In some circumstances, the IRS may file a tax lien against you, garnish your wages, or take money directly from your bank account, IRAs or life insurance policy. An attorney will ensure an agreement that has your best interest in mind, and will relieve you of the hassle and stress of dealing with the complicated paperwork required.
Why Pearson Butler will work for you
Attorney Jim Gilland has been in the practice of tax law for over 18 years and has a track record of success in gaining his clients agreements that are right for them. Pearson Butler gives each client specialized attention and care to reach the best outcomes for them, something you will not find at larger firms.
If you work with Pearson Butler, we will guarantee your case will not be handed over to inexperienced paralegals. Attorneys with extensive experience will take your case from start right through to a successful and agreeable finish for you. Our clients are our utmost priority.
Pearson Butler believes that our clients should understand all the details of their case. In order to prevent you from worrying, our attorneys will work closely with you throughout the process of determining the best tax debt relief option for you. We will keep you informed of our progress towards your goals. We look forward to helping you find a solution that makes you happy and comfortable.