Five types of IRS Installment Agreements:
Streamlined IRS Installment AgreementThis type of agreement is for individuals owing less than $25,000 and can be paid off in 72 payments. The payment amount is usually the full amount you owe plus penalties and interest. The fee for a new installment agreement is $105 or $43 for citizens below poverty guidelines. This type of installment agreement does not require a financial statement.
Partial Payment AgreementThere are some cases in which the IRS will make a partial payment agreement. To be considered for this, you must submit accurate financial information to be reviewed. The IRS will also look at any equity you have, to assess if you could liquidate those assets to fulfill the amount you owe. If you are then approved for the partial agreement, you will be subject to review every 2 years. If the IRS feels you are in a better financial position, your payments could change, or the agreement could be ended
Direct Debit AgreementIf you enter into an installment agreement with the IRS you have the option of a direct debit agreement. If you do a direct debit agreement the fee is smaller (only $52) and if you have a streamlined agreement between the amounts of $25,001 to $50,000 you are required to either make this type of agreement or a payroll deduct agreement.
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Guaranteed Installment AgreementThere are only a couple of differences between a guaranteed installment agreement and a streamlined installment agreement. One is the amount of months you will make payments, which is 30 rather than 72, and the other is that you have to owe less than $10,000.
Verified Financial AgreementThis type of agreement is available for people who owe over $50,000 to the IRS. The difference with this agreement is it is not set over a certain amount of months like most of the other agreements. Also, the IRS can require you to sell off assets to fulfill as much of the amount due as possible.
These IRS tax agreements all have a wide range of stipulations, of course. But, they can be very helpful for people who were not expecting to pay taxes, or the amount was more than they expected. To learn about all of the qualifications and get answers to any questions you may have, contact New York Tax Attorney Service at (347) 535-4017 to get professional tax debt help if you live in New York City, .
CALL (347) 535-4017!