I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. The IRS has several different Installment Agreement Plans to make it easier for a taxpayer to get caught up. These include:
- Automatic Installment Agreement
- Streamlined Installment Agreement
- Expanded Installment Agreement
- Regular Installment Agreement
- Partial-Pay Installment Agreement
The Automatic Installment Agreement is for debts that are less than $10,000 and can be paid within 3 years.
The Streamlined Installment Agreement is for individuals with debts up to $50,000 and businesses with debts up to $25,000 that can be paid over a period up to 72 months.
The Expanded Installment Agreement is for individuals and ‘out-of-business’ businesses that owe up to $100,000 and can be paid over a period of up to 84 months.
The IRS will not make any installment agreements if they think you are not in compliance with your current year taxes. This means you must have filed all your returns and have made any required withholding and estimated tax payments. Additionally, the taxpayer must not have had any previous past-due taxes or installment agreements for the last 5 years to qualify. The great thing about these plans is they do not require the taxpayer to provide any financial information. Just go online and set it up.
Regular and Partial-Pay Agreements are the options left to the taxpayer if they cannot qualify for these other plans. Now life is going to get a lot harder because the taxpayer is required to provide lots of financial information on what they own and their income streams. The IRS will calculate the ‘Reasonable Collection Potential’ to determine how much and for how many months they are going to want payments. Professional help is advised on negotiating these agreements.
If you or someone you know has received a Notice of Intent to Levy or some other federal or state tax issue, please feel free to contact me at either (352) 317-5692 or email email@example.com.
Cell (352) 317-5692
Office (352) 376-9401
Fax (352) 376-9440