Settle IRS Tax Debt with an Installment Agreement

There are different types of installment agreements through which you can pay off your IRS tax debt easily. One type of installment agreement is a streamlined installment agreement. When applying for an installment agreement, you don’t have to disclose your financial data. With this installment agreement you can clear your IRS tax debt within 5 years.

IRS Debt Relief Eligibility:

A streamline installment agreement can help settle IRS debt. You can apply for a streamlined installment agreement if the amount of IRS tax debt is less than $25,000. Apart from this there are certain qualifications which are required before being eligible for a streamlined installment agreement.

• All the necessary tax returns must be filed by you
• Total amount of IRS tax debt owed must not exceed $25,000
• You must be able to pay monthly payments that will settle your amount of taxes within 5 years (60 Months)

Typical method of calculating monthly payment is total amount of taxes owed will be divided by number of months (60 months). In addition 20% amount would be added to your monthly payments for covering interest and penalties.

Negotiating to deal with your IRS Problems:

The following are some important steps which you can take for negotiation a streamlined installment agreement:

• You can contact a tax professional or tax attorney who is vastly experienced in solving IRS tax problems. A tax attorney or tax professional will review all your financial information and will tell you if there is another option available which is more suitable then a streamlined installment agreement to settle IRS debt. This is optional but it can be beneficial for you.
• Ensure that all the tax returns have been filed so the IRS can calculate your full IRS tax debt.
• You must ask for collection statute expiration date (CSED) if your IRS tax debt exceeds the period of 5 years. If the collection statute date is within 5 years you will not be offered a streamlined installment agreement.
• You must propose an amount for monthly installment which is suitable for you to pay. Make sure that the amount proposed by you must not take more than 60 months for clearing off your IRS tax debt

Have your IRS Tax Debt Problems solved Now