FREQUENTLY ASKED QUESTIONS
IRS Installment Agreements are agreements between a taxpayer and the IRS to pay off a tax debt over time. Generally, the IRS will only levy property if the taxpayer fails to comply with the terms of their Installment Agreement. However, there are some exceptions to this rule. For example, if the IRS determines that the taxpayer has the ability to pay their debt in full, they may levy property even if the taxpayer is current on their Installment Agreement. If you are in an IRS Installment Agreement and are concerned about a possible levy, you should contact a tax professional to discuss your options.
The IRS can issue a tax lien even if you are in an Installment Agreement. A tax lien is a claim on your property, including your real estate, personal property, and financial assets. Once the IRS issues a tax lien, it becomes a public record, which can damage your credit score and make it difficult to obtain financing. The IRS can also take legal action to seize your property in order to satisfy the debt. However, if you are in an Installment Agreement, the IRS has agreed to accept payments on the debt and will not take any further collection action. If you default on the Installment Agreement, the IRS may resume collection action, including issuing a tax lien. For this reason, it is important to stay current on your payments and comply with the terms of the agreement.
Missing an IRS payment can have serious consequences. If you miss an IRS Installment Agreement payment or IRS payment plan monthly payment, you will be considered in default. This means the entire amount you owe becomes due immediately. The IRS will also charge you a late fee, and they may assess additional penalties and interest. If you are unable to pay the full amount, the IRS may take enforcement action, such as wage garnishment or levying your bank account. As you can see, it is very important to make your IRS payments on time. If you are having trouble making a payment, contact us immediately to discuss your options.
The IRS offers a variety of payment options for taxpayers who are unable to pay their taxes in full. One option is an IRS Installment Agreement, which allows taxpayers to make monthly payments towards their tax liability. The IRS’s Online Payment Agreement tool can be used to set up an Installment Agreement for the current tax year. In order to qualify, taxpayers must have filed all required tax returns, and they must owe less than $50,000 in taxes. Once the IRS has approved the payment plan, taxpayers will be responsible for making monthly payments until their tax liability is paid in full. If you are unable to make a payment, it is important to contact the IRS immediately to make alternative arrangements. With the IRS’s Online Payment Agreement tool, you can take control of your tax debt and make manageable monthly payments towards your IRS tax bill.
There are several payment methods the IRS accepts. You can pay by check, money order, credit card, or IRS Installment Agreement. To pay by check or money order, make it payable to the United States Treasury and include your name, address, daytime phone number, Social Security number, and the tax year for which you're making the payment. Mail your payment to the address listed on the IRS notice or instruction booklet. To pay by credit card, you can call the toll-free number listed on the IRS notice or instruction booklet. There is a convenience fee for paying by credit card. You can also pay online by authorizing an electronic funds withdrawal from your checking or savings account or by using IRS Direct Pay. With IRS Direct Pay, you can choose to have your payment withdrawn from your account on a specific date. IRS Installment Agreements allow you to make monthly payments on your tax debt. To apply for an IRS Installment Agreement, you'll need to complete and return Form 9465:Installment Agreement Request. Once your application is approved, you'll be notified of the monthly payment amount and due date. If you have any questions about how to make a payment, you can contact us today.