Requesting Installment Agreements

If you owe a substantial amount of money to the IRS that you simply won’t be able to pay in a short space of time and the means of an Offer in Compromise has proved unsuccessful then your next step might be to offer payments by way of weekly/monthly installments.

To take this route can be quite expensive because all payments made by installments will be subjected to interest charges throughout the repayment period and perhaps penalties for the late payments. It has been said that in doing this, it can prove more costly than that of taking out a loan from a bank and with none of these penalties being deductible you need to prepare yourself for a costly method.

Aside from these charges, the IRS also implements what is called a $43 user fee for setting up the repayment schedule.

It is very important to remember that if you have entered into an installment agreement and all payments are adhered to, you could still have a Notice of Federal Tax Lien filed against you, which means, that it may affect your credit rating and it won’t be lifted until the total sum has been paid.

The IRS cannot seize any property or wages following action that is pending assessment and waiting approval:

• You still have an installment agreement pending and awaiting acceptance
• The installment agreement has been implemented and is being adhered to, or,
• For up to 30 days following an installment agreement being refused or awaiting the outcome of an appeal further to such a refusal.
  

Taking an active role when it comes to dealing with the IRS is very important but should you choose to use our services then we can aid you with the entire process however, keeping up with any repayment schedule agreed is solely your responsibility, we can only advise on how to proceed.