Have you filed your returns but were unable to pay the taxes due or just completed your return and owe more than you can pay? Don't panic, CONTACT US today. We can help with an installment agreement or an Offer In Compromise. You do have options, but you must file the returns. If you don't, the penalties could be terrible.

If you are currently unable to pay the full amount of your tax liability, but do not qualify for an Offer In Compromise, we can contact the IRS and request an Installment Agreement.

We will review your monthly income and living expenses, and let you know what the IRS position is on "allowable" expenses. As you can expect, the IRS definition of living expenses and ours will be very different. With your approval, we will negotiate with the IRS to have them accept the Installment Agreement.

A negotiated payment plan is much more favorable that a Wage Levy, Bank Levy, or Asset Seizure. This agreement, after we have it approved by the IRS, will allow you to pay your tax liability over a period of time. In general, the IRS will review your financial situation again in about two years to see if the monthly payments can be increased.

Fresh Start Installment Agreements

You can make monthly payments through an installment agreement if you're not financially able to pay your tax debt immediately. However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full.

In-Business Trust Fund Express Installment Agreements

Small businesses who currently have employees can qualify for an In-Business Trust Fund Express Installment Agreement (IBTF-Express IA). These installment agreements generally do not require a financial statement or financial verification as part of the application process.

The criteria to qualify for an IBTF-Express IA are:

• You owe $25,000 or less at the time the agreement is established. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
• The debt must be full paid within 24-months or prior to the Collection Statute Expiration Date (CSED), whichever is earlier.
• You must enroll in a Direct Debit installment agreement (DDIA) if the amount you owe is between $10,000 and $25,000.
• You must be compliant with all filing and payment requirements.

To Request an In-Business Trust Fund Express Installment Agreement:

• Call the number on your bill or 1-800-829-4933.
• Visit your local IRS office.
• Complete IRS Form 9465, Installment Agreement Request (PDF), and send it to the address on your bill. If you do not have a bill, send the form to the address on page 2 of the Instructions for Form 9465 (PDF).

Streamlined Installment Agreements

The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes. Under the Fresh Start initiative, the maximum dollar criteria for streamlined installment agreements has been raised from $25,000 to $50,000 and the maximum term has been raised from 60 months to 72 months.

These installment agreements generally do not require a financial statement, but a limited amount of financial information may be required in the application process.

The Streamlined Installment Agreement criteria is divided into two categories, balance due of $25,000 or less, and balance due $25,001 to $50,000.

The criteria to qualify for streamlined installment agreements with a balance due of $25,00 or less are:

• You owe $25,000 or less, at the time the agreement is established. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
• The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
• You must be compliant with all filing and payment requirements.
• Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
• Defunct businesses, including any type of entity and any type tax (Form 940, 941, 943, etc.).
• Operating businesses are limited to income tax liabilities only (Form 1120).

The criteria to qualify for streamlined installment agreements with a balance due of $25,001 to $50,000 are:

• You owe $25,001 to $50,000, at the time the agreement is established. If you owe more than $50,000, you may pay down the liability before entering into the agreement in order to qualify.
• The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
• You must be compliant with all filing and payment requirements.
• Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
• Businesses are limited to defunct sole proprietors who owe any type of tax (Form 940, 941, 943, etc.).
• You must enroll in a Direct Debit Installment Agreement.
• A limited amount of financial information may be required during the application process.

Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A (PDF) or Form 433-F (PDF)).

To request an installment agreement:

• Online. Individual taxpayers can use the On-line Payment Agreement (OPA) page and follow the instructions.
• By Phone. Please call the number on your bill. If you do not have a bill, 1-800-829-1040 (individuals), or 1-800-829-4933 (businesses).
• By mail. Please complete Form 9465, Installment Agreement Request (PDF), if you owe $25,000 or less. Complete Form 9465-FS, Installment Agreement Request (PDF), if you owe more than $25,000. Or you can use Form 2159, Payroll Deduction Agreement.
• In person at your local IRS office.

CONTACT US today for a free analysis!