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Can I Make Installment Payments on My Tax Debt?

Dealing with tax debt can be overwhelming--especially because it’s not as easy to eliminate compared to other debts. If you can’t pay off your tax debt in full, you can apply for a payment plan, including an installment agreement, to become tax debt-free. Our Tampa tax debt attorneys explain what you need to qualify and apply for an IRS installment agreement.

If you have overwhelming tax debt, our team at Law Offices of Darrin T. Mish, P.A. can analyze your situation and help you determine which payment option is best for you. Call our team today at (813) 295-7648!

Types of Installment Agreements

If paying the entire tax debt at once isn’t possible for you, an installment agreement can help you eliminate tax debt by making payments. There are four different types of installment agreements available to taxpayers:

  • Guaranteed Installment Agreement: This option is available for taxpayers who owe less than $10,000 in taxes (excluding interest and penalties). You will need to demonstrate that you have filed tax returns in the last five years and that you haven’t applied for an installment agreement in the past. In addition, you will need to prove that you are unable to pay off the debt within 120 days, but you are able to make monthly payments.
  • Streamlined Installment Agreement: This payment option is available for tax debt (including interest and penalties) that don’t exceed $50,000. You also will need to demonstrate that you can pay it off in at least 72 months.
  • Partial Payment Installment Agreement: This option allows you to enter into an agreement for partial payments with the IRS. To qualify, you will need to complete a financial statement reporting your income and living expenses. The financial report will need to prove that you are unable to pay the full amount and, therefore, should only make partial payments.
  • Non-Streamlined Installment Agreement: If you owe more than $50,000 and you can make monthly payments, you can apply for a non-streamlined agreement. However, this option will require you to negotiate with the IRS. To qualify, you will need to complete a financial statement reporting your income and living expenses.

Do I Qualify for an Installment Agreement?

Your unique tax situation will determine which IRS payment options are available to you. According to the IRS, there are two payment options available: short-term and long-term payment plans. The short-term payment plan is typically 120 days or less, and the long-term payment option, otherwise known as an installment agreement, is 120 days or more.

The IRS allows you to apply for a payment plan by phone, mail, in-person, or online. It’s vital to have an experienced attorney review your case before applying to prevent errors that could affect the outcome of your application.

What Do I Need to Apply?

To apply for a payment plan, the IRS will request basic information about you and your case. For example, they will ask for your email address, filing status, address, social security number, etc. They will also ask you to confirm your identity by providing them with a financial account, a phone number registered in your name, or an activation code received by mail.

Tampa Tax Debt Attorneys

If you owe taxes to the IRS, you have options to find relief. Our team at Law Offices of Darrin T. Mish, P.A. has been helping individuals throughout Tampa obtain tax debt relief. We can analyze your situation and help you determine which payment option is best suited for your unique situation. We have the knowledge, skills, and experience to help you achieve your desired results.

Contact our Tampa tax debt relief lawyers today at (813) 295-7648 to schedule a case review!

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