If you are dealing with overwhelming tax debt, you might be looking for a way to lessen the burden. A common tool used to get rid of tax debts are installment agreements. Our Tampa tax debt relief attorneys explain what installment agreements are and how to negotiate a monthly payment that works for you.
What Is an Installment Agreement?
The IRS offers installment agreements to taxpayers who are having a difficult time paying. With an installment agreement, you get to pay the money you owe to the IRS in monthly installment payments. However, it is important to note that installment agreements often come with interest and penalties that can reach up to ten percent.
How Do I Negotiate a Monthly Plan that Works for Me?
When applying for an installment agreement with the IRS, they will ask you to fill out Collection Information Statement on Form 433-A. They will use this information to determine how much you can and should pay in installments every month. However, you can still use negotiating tactics to achieve a desirable plan that also works for you.
When you fill out the Collection Information Statement, you can propose an appropriate plan that works for you. A great way to motivate your proposed plan to go through is by offering to pay the amount of your income minus your necessary living expenses. This is the cash you have leftover after calculating all the necessary living expenses. You can also start giving voluntary payments in the suggested amount to demonstrate your good faith and track record.
This may motivate the IRS to agree to your negotiation terms. However, negotiating with the IRS is not an easy task. You should have an experienced attorney on your side to help you achieve your desired outcome.
Get in touch with our Tampa tax debt relief attorneys today at (813) 295-7648 to schedule a consultation!