IRS Installment Agreement Overview & Help

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Understand what an IRS Installment Agreement is, the different types, which federal tax installment agreement is best for you if you owe the IRS and cannot pay in full but rather over time.

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IRS Installment Agreement Overview & Help

  1. 1. Selecting the Right IRS Installment Agreement<br />John Williams<br />BackTaxesHelp.com<br />Contributing Author and Tax Accountant<br />
  2. 2. What is an IRS Installment Agreement?<br /><ul><li>An IRS Installment Agreement can be defined as an agreement between the IRS and the taxpayer to pay taxes over series of monthly payments that can last 3-5 years. With a PPIA or Partial Payment Installment Agreement, only part of the taxes are paid back. </li></ul>1-800-717-2797<br />Does not serve as legal advice. BackTaxesHelp.com © 2009<br />
  3. 3. When Should an IRS Installment Agreement Be Considered?<br /><ul><li>An IRS Installment agreement should be considered when you are unable to pay IRS taxes in full, nor receive a better interest rate or loan from a financial institution or bank.
  4. 4. Current Interest Rate for Underpayment: 4%
  5. 5. Late Payment Penalty per month ¼% or 3% Annually
  6. 6. Total Interest Rate: 7%
  7. 7. Without an Installment Agreement: 10%</li></ul>1-800-717-2797<br />Does not serve as legal advice. BackTaxesHelp.com © 2009<br />
  8. 8. What Are The Different Types of IRS Installment Agreements?<br /><ul><li>Guaranteed Installment Agreement
  9. 9. If you owe 10,000 or less (excluding penalties & Interest)
  10. 10. Streamlined Installment Agreement
  11. 11. If you owe 25,000 or less (including penalties & Interest)
  12. 12. Financially Verified Installment Agreement
  13. 13. If you owe the IRS 25,000 or more (including penalties & Interest)
  14. 14. Partial Payment Installment Agreement
  15. 15. If you owe the cannot make minimum monthly payments and prove hardship</li></ul>1-800-717-2797<br />Does not serve as legal advice. BackTaxesHelp.com © 2009<br />
  16. 16. Guaranteed Installment Agreement<br />Requirements:<br />Unfiled Tax Returns Need To Be Filed<br />You Can Make Monthly Payments for 3 Years<br />No other Installment Agreements Present <br />Cannot Have Filed for Bankruptcy or had an OIC accepted<br />To Apply:<br />Use Form 9465 and fill in monthly payment amount (with calculation)<br />Include Setup Fee With 1st Payment and mail form with tax return<br />Or Use IRS Online Payment Agreement Application<br />1-800-717-2797<br />Does not serve as legal advice. BackTaxesHelp.com © 2009<br />
  17. 17. Streamlined Installment Agreement<br />Requirements:<br />Unfiled Tax Returns Need To Be Filed<br />You Can Make Monthly Payments for Length of Agreement (5 yr)<br />No other Installment Agreements Present <br />Cannot Have Filed for Bankruptcy or had an OIC accepted<br />To Apply:<br />Use Form 9465 and fill in monthly payment amount (with calculation)<br />Include Setup Fee With 1st Payment and mail form with tax return<br />Or Use IRS Online Payment Agreement Application<br />1-800-717-2797<br />Does not serve as legal advice. BackTaxesHelp.com © 2009<br />
  18. 18. Financially Verified Installment Agreement (With CIS – Form 433)<br />Requirements:<br />Unfiled Returns Need To Be Filed, Not In Bankruptcy or OIC Filed<br />You Can Make Monthly Payments for Length of Agreement (5 yr)<br />No other Installment Agreements Present and you owe over 25k <br />To Apply:<br />Use Form 9465 and fill in monthly payment amount (with calculation)<br />Include Setup Fee With 1st Payment and mail form with tax return<br />Fill out form 433-A (even F is possible these days)<br />Send form 433, Form 9465, and your tax return to IRS<br />1-800-717-2797<br />Does not serve as legal advice. BackTaxesHelp.com © 2009<br />
  19. 19. Partial Payment Installment Agreement<br />Requirements:<br />Unfiled Returns Need To Be Filed, Not In Bankruptcy or OIC Filed<br />You Can Make Monthly Payments and owe over 10k (including P&I)<br />No other Installment Agreements Present <br />To Apply:<br />Use Form 9465 and fill in monthly payment that is affordable (calc)<br />Understand remaining statue of limitations periods left on debt<br />Include Setup Fee With 1st Payment and mail form with tax return<br />Complete form 433-A (even F is accepted with high $ amounts)<br />Send form 433, Form 9465, and your tax return to IRS<br />1-800-717-2797<br />Does not serve as legal advice. BackTaxesHelp.com © 2009<br />
  20. 20. Recommendations<br />Recommendations: (More info link: IRS Installment Agreement)<br />Use a tax professional (form 433-A and F are not easy)<br />Tackle your tax problem sooner than later (interest and penalties)<br />Consider a bank loan if you can obtain interest at a lower amount<br />Reach out to tax pros for a free consultation and quote for professional services at 1-800-717-2797<br />1-800-717-2797<br />Does not serve as legal advice. BackTaxesHelp.com © 2009<br />

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