The IRS offers many installment agreement options for taxpayers to pay their back taxes. These installment agreement options range in length from a 120-day extension to full pay your tax debt liabilities to providing the IRS will all of your financial information to request a payment plan that lasts through the collection statute end date. Which installment agreement you qualify for will vary depending on how much tax you owe, the type of tax, the age of the tax, and your ability to pay. For instance, a Michigan taxpayer that owes $3,000.00 on their current year return will qualify for a very different installment agreement than a taxpayer that owes $100,000.00 for tax debt spanning over the last 6 years.

One thing that is common for all IRS installment agreements is that you must be in compliance with your return filing before the IRS will establish an installment agreement. Once the agreement has been established, you cannot accrue any new tax debt or the agreement will default.

The IRS will also continue to assess interest and penalties against you while your installment agreement is in effect. The IRS will also keep any refunds from your tax returns and apply them to your back tax balances.

Contact Austin & Larson Tax Resolution located in  Saginaw, MI, Jackson, MI, and Howell, MI between Lansing and Detroit, and after review of the details of what you owe, we will present to you the possible installment agreement options to resolve your predicament with an optimal settlement solution. Call us now at 1-866-668-2953 for immediate tax debt help to prevent an IRS levy or for removal of a tax lien.

HOW DO YOU REQUEST AN INSTALLMENT AGREEMENT WITH THE IRS

There are several different ways to request a payment plan with the IRS. The three most common options are: 1. Requesting a payment plan online; 2. Requesting a payment plan through IRS Automated Collection System; 3. Requesting a payment plan through a Revenue Officer.

Online IRS Payment Plans

Online IRS payment plans can be established directly through the IRS website. However, not all taxpayers meet the criteria for an online IRS debt settlement payment plan. The IRS has a cap on the amount of taxes you can owe to be eligible to set-up an online installment agreement. You also must be able to pay your tax balance in full over a set number of months. If your tax balance is too high, or if you are unable to meet the monthly payment amount, you will not qualify for an online installment agreement.

IRS Automated Collection System (ACS)

When a taxpayer contacts the IRS to establish a payment plan, they will be connected to an ACS agent. This IRS agent has the authority to set-up installment agreements for most taxpayers. Depending on the type of installment agreement, the amount owed, and the type of taxes, the taxpayer may be required to provide their financial information or supply supporting documentation. When calling ACS, the taxpayer will be connected to the first available agent. If you have to call back or provide additional information, you will be connected to a different agent every time. You may have to update your previously provided information or provide additional support again. Michigan State Tax Payment Plan

IRS Revenue Officer

Depending on your specific tax issues or the amount of taxes that you owe, the IRS may assign your file to a Revenue Officer. If your file is assigned to a Revenue Officer, you will work with this person directly to resolve your taxes and establish an installment agreement. A Revenue Officer will require you to send them your financial information along with all of your supporting information. They may also require you to liquidate some of your assets to apply towards your tax debt before they will establish your installment agreement. A Revenue Officer has the ability to issue levies and seize your assets. They may also require you to set-up an installment agreement as a direct debit or place an ongoing levy on your wages if you have defaulted payment plans in the past. If a Revenue Officer is assigned to your file, you should seek representation immediately.