Frisco, TX IRS Problem Resolution

Installment Agreement

Installment agreement

An installment agreement is a possible option for people that want to get rid of their tax debt but don’t have enough money to pay it off all at once. It allows you to break the amount of the debt down into affordable monthly increments. The IRS will allow you to pay off your back taxes over time while remaining in good standing with the taxing authority. This is

Many taxpayers like this option because the IRS may reduce certain penalties once an installment agreement has been established. Please read on to learn more about how this arrangement works and if it's the best payment plan for you.

How Does an Installment Agreement Work?

When you’re ready to apply, J Dixon Tax Advisory Services, PC will file IRS Form 9465 on your behalf to request an installment agreement. Similar to other payment plans offered by the IRS, any delinquent tax returns must be filed before applying for an installment agreement. The IRS charges a fee to set up the agreement and even if they grant it, you’ll continue to be charged interest as you pay off your tax debt.

Installment Agreement Payments

Certain plans only require a small monthly payment until the statue of limitations is reached and then the rest of debt is cleared. Other kinds of plans may demand a full repayment and require a larger monthly payment but, even in these cases, the increments are designed to be reasonable so the goal of paying off the debt can be achieved. The designated amount of the monthly payment will be determined by weighing the overall tax bill against what the taxpayer has the ability to pay. These installments must be consistently paid on time to avoid defaulting on the agreement.

Is an Installment Agreement Right for Me?

An installment agreement is often fairly easy to obtain when the amount of taxes you owe doesn’t exceed $25,000 and you have qualified tax professional like J Dixon Tax Advisory Services, PC helping you file the necessary documentation. The IRS offers different types of installment agreements and some have specific requirements you must meet in order to successfully set up the agreement. Even if you owe a larger amount, our Frisco, TX CPA firm will work with the IRS to find the best solution to settle your tax debt. Call us at 214-390-9711 now!