IRS Installment Agreements

Lighten the burdens of large tax liabilities with options to settle your debt to a payment plan over time. Wiggam Law is here to help you get the relief you need.

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You can be in over your head before you know it.

From divorce to chronic illness or injury to a death in the family, when life has you overwhelmed, taxes can be the last thing on your mind. Then they start piling up until you’re in more debt than you can pay off.

Climb your mountain of tax debt and put your life back on track with IRS payment plans and installment agreements.

Understanding IRS Installment Agreements and Payment Plans

Payment plans and installment agreements are agreements you make with the IRS to pay the taxes you owe over a period of time if you are unable to pay the taxes you owe in one lump sum. An installment agreement can make a difficult tax situation more manageable.

Difficulty selling or refinancing real estate property or vehicles Prevent Additional Penalties

wage-garnishmentStop IRS Collections

Reduce Total Liabilities

How IRS Installment Agreements Get Your Life Back On Track

Wiggam Law brings extensive state and federal tax law expertise and client advocacy experience to help you find the best solutions to your tax troubles. We explore resolution options while keeping your own financial goals in mind.

Pay Off Tax Debt

Turn a single overwhelming lump sum tax debt payment into monthly installments depending on your total tax liabilities and financial circumstances.

Pause IRS Enforcement

Depending on your unique situation, an IRS installment agreement or payment plan can prevent wage garnishment or stop garnishment currently in progress.

Stop Tax Levies

As long as you consistently make your minimum monthly payments, the IRS will not issue levies on your property to satisfy your tax debts.

Reduce Total Liabilities

Make payments until the collection statute expiration date, after which you are no longer required to pay the remaining portion of the debt.

Wiggam Law can help you find a solution that fits your tax problems.

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Exploring the IRS Payment Plan Process

Applying for a payment plan or installment agreement with the IRS can be daunting. Let’s break down the process of applying for a payment plan and sticking to it until you’re finally tax debt-free:

  1. Collect and organize all necessary forms and documentation. This includes filing any unfiled tax returns from previous years, which is often the most challenging part of the process.
  2. Double-check and ensure that all previous tax returns are completed and filed accurately.
  3. File a request for a payment plan. The IRS will only approve your request if it is feasible–i.e. an achievable amount that can be paid monthly for up to 6 years.
  4. Once the IRS approves your plan, make your payments on time to avoid breaking the rules of the agreement and incurring new tax debt.
  5. If you do not adhere to your own payment plan, the IRS will terminate its agreement. If you are concerned about defaulting, proactively contact the IRS about changing the payment date, amount, and other parts of your payment plan.

With Wiggam Law, you can get the personalized guidance you need to apply for IRS installment agreements and payment plans, appeal rejections or request changes, and find your way back to a tax debt-free life.

Installment Agreement Success Stories

$144,000.00 Saved

Our client came to us owing over $279,000 in taxes, interest, and penalties to both the IRS and the State of Georgia. Between her two liabilities, we successfully had $84,000 of her IRS balance written off with an installment plan and negotiated an Offer in Compromise to save $60,000 in state tax debt.

$56,400 Saved

Our client hired us to negotiate a new installment agreement, as their existing $400 monthly agreement was under review by the IRS. We were able to negotiate a new $100 monthly installment agreement that took into account what the client could afford to pay. As a result, he paid approximately $3,600 to “settle” his $60,000 debt.

IRS Payment Plan and Installment Agreement FAQ

The IRS offers several payment plan options that vary in length and terms available. Which payment plans are available to you depends on the amount you owe, the collection expiration date, and the specific details of your unique financial situation. Different types of payment plans include:

  • Short-term installment agreements, which extend the due date for your back taxes by 180 days.
  • Long-term installment agreements, which give you 72 months to pay the full amount of your tax debt over time. In order to qualify for a long-term installment plan, you must be current on all tax return filings and payment requirements.
  • Partial-pay installment agreements, a type of hardship payment plan that allows you to settle for less than you owe if you cannot afford the full amount.

If you are also behind on your state taxes, you will need to negotiate an arrangement with your state tax agency. Most states, including Georgia, also offer payment plans for back taxes.

In most cases, if you owe less than $200,000, you will qualify for various installment agreements without any consideration of your ability to repay the tax debt. Over $200,000, the IRS will look at your income and assets and consider your ability to pay before granting an installment agreement. They may require you to share additional information by completing Form 433-A for individuals or Form 433-B for businesses.

When you request a payment plan with the IRS, two things can happen: either your request is accepted or it is rejected. If the IRS accepts your requests, it is your responsibility to:

  • Pay all monthly payments on time until paid in full.
  • File your tax returns and pay any tax owed on time.

Failure to do either will lead to a default.

While payment plans and installment agreements are in effect, they can prevent wage garnishments or levies or stop those already in progress. Lenders may also consider your payment plan if you intend to take out a mortgage.

Still have questions about IRS installment agreements and payment plans? We have the answers.

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Discover actionable strategies to prevent wage garnishments and bank levies, and learn how Wiggam Law has helped others successfully resolve their tax issues.

Overcome your tax troubles with payment plans and installment agreements.

Reach out to Wiggam Law today. Call 404-233-9800 or contact us:

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