Streamlined IRS Installment Agreements
Is your financial future in jeopardy because of outstanding IRS tax debt? Are you afraid that your debt situation will spiral out of control, resulting in a wage garnishment, bank levy, or tax lien? Do you feel confused about your options and wish you had your own tax professional to help you navigate the complex and ever-changing tax code?
At Key Tax Group, our tax attorneys, enrolled agents, and support team understand that the stress of having outstanding IRS debt can be overwhelming for our clients. Harassing phone calls from creditors and aggressive IRS agents who demand payment can make you live in fear of serious future debt collection activity. Tax liens, wage garnishments, and other actions can have crippling effects on nearly every aspect of your life, including your credit, job, and bank account.
We believe that tax debt doesn’t have to be the end of your financial dreams. If you qualify, we can help you get started with a streamlined IRS payment plan to eliminate your debt through a negotiated payment amount that you can afford. The streamlined IRS payment plan can be an excellent way for you to regain control over your finances without worrying about escalating collection activity.
How to Qualify for a Streamlined IRS Installment Agreement
Not everyone qualifies for an IRS installment agreement. Your unique tax situation will determine whether you qualify.
The IRS doesn’t make it easy to find out who qualifies and who doesn’t but the tax lawyers and support team here at Key Tax Group know how to assess your circumstances and give you the clear, direct answers you need.
Here’s how to qualify for a streamlined installment agreement with the IRS:
- The aggregate balance of unpaid assessments must be $50,000 or less. This includes tax, assessed penalties and interest, and other assessments, but not accrued interest or penalties.
- If you have pre-assessed taxes, add that liability to your unpaid assessments. The total must be $50,000 or less.
- You must have filed all tax returns required by the IRS.
We know that tax questions, especially when you have tax debt, can cause anxiety in your life. In fact, the entire process of qualifying and requesting a payment plan can be extremely stressful. The support team, enrolled agents, and tax lawyers at Key Tax Group understand what you’re going through, and we’re here to help. For a FREE, no-obligation consultation, call us today. Or, if you prefer, contact us online and we’ll help you find your path to debt freedom.
If you’d like to learn more before you call, read our FAQ section below. You’ll find answers to some of the most common questions we get from clients.
Installment Agreement FAQs
Our tax lawyers, enrolled agents, and support staff work continually to stay abreast of current tax law because it’s our job to provide clients with the best possible advice.
While these FAQs are current at the time of posting, they could have changed in the meantime. That’s why we suggest calling one of our team members for current information on the types of IRS payment plans available to you for your specific tax situation. But as a starting point and general guide, here are answers to some of your most commonly asked questions.
Q: What if my tax debt is more than $50,000? What are my options?
A: You can still get a payment plan with the IRS. Generally speaking, however, it often makes sense to pay down your balance so that it’s $50,000 or less. That way, you may qualify for the streamlined installment agreement. You are also more likely to avoid a tax lien.
Q: Can my application for an installment agreement be rejected?
A: Unfortunately, yes, it can. The IRS can reject your request for several reasons. Luckily, however, you may appeal a rejection. You must do so within 30 days from the date of rejection.
Q: How do I request an IRS installment agreement?
A: The IRS maintains an Online Payment Agreement Tool on the IRS.gov website. There’s often some financial information you must supply to the IRS with your request, but if you owe less than $50,000 and can pay your bill within 72 months, you typically won’t have to supply a financial statement.
You will need, however, some detailed information about your identity and your tax situation, including the following:
- Date of birth
- A valid email address
- The address from your most recent tax return
- Social Security Number
Q: What happens if I miss a payment while I’m enrolled in an IRS installment agreement?
A: Missing a payment is considered a default on the agreement. You may receive Notice CP 523 from the IRS, which is a notification that your agreement will be terminated. If this occurs, call the IRS within 30 days of the date of the letter to restore your agreement.
Q: Why does the IRS offer installment agreements?
A: Basically, the IRS offers these payment options for back taxes because they want to help struggling taxpayers pay off their debts. One of the biggest motivations for people to enter into these payment plans is to avoid a federal tax lien.
Q: What is a tax lien?
A: Paying federal taxes is a legal obligation, so when you neglect to pay your tax bill, the IRS will file a document called the Notice of Federal Tax Lien. This will negatively affect your ability to get a loan and sell or transfer property. You will also have limited access to credit when there’s a tax lien on your property.
In short, your financial life will be in “lockdown”—although you’ll still have access to your property and your money, you’ll face limitations on what you can do, financially speaking. If you are faced with a tax lien, contact us for a consultation on removing it.
Q: Does the IRS have a legal right to claim my property like that?
A: Yes! Think of a federal tax lien as a type of worst-case scenario—something you want to try and avoid at all costs. If you don’t pay your back taxes, you risk having the IRS aggressively protect its own interests. In plain English, that means it can have an adverse effect on your personal property, your real estate, and even your bank accounts and other financial assets.
But don’t expect the IRS to come knocking at your door to seize your property. Typically, a federal tax lien means that the IRS has first dibs on your property, ahead of other creditors you may have. For example, a federal tax lien would give the IRS priority as a creditor over your credit card debt.
Q: Who gets tax liens?
A: If you owe the IRS more than $10,000 and you’re not enrolled in any type of payment plan that settles your bill within six years, you may receive a federal tax lien notice.
Q: How can I avoid a tax lien?
A: First, if you owe back taxes, you will receive a series of letters from the IRS reminding you to pay. If those payment notices go unanswered for long enough, the IRS may ramp up their efforts to get its money. That’s when it typically files the dreaded tax lien explained above. Keep in mind, however, that the IRS doesn’t always send multiple notices. It may simply make an assessment.
To try and avoid an IRS tax lien, you may enter into an installment agreement with the IRS. Another option is the IRS’s Offers in Compromise (OIC) program. Qualifying for the OIC program involves an entirely different set of factors.
Stop tax liens and pay off your debt with the streamlined IRS payment plan.
The streamlined IRS payment plan is a method for paying off tax debts under $50,000. For those who qualify, their debt is paid off completely and, once enrolled, there is no further risk of liens being filed against you
If you want to avoid using your hard-earned money in the bank to pay off your debt in its entirety, or live in fear of having a tax lien filed against you, the streamlined IRS payment plan can help you realign your finances without fear of the situation worsening.
Key Tax Group: Smarter, Easier Tax Debt Relief
At Key Tax Group, we understand that dealing with IRS debt is a stressful experience. Aggressive agents can try to demand you make payments that are well outside of your budget and, if you don’t pay, you could be faced with further collection activity such as wage garnishments, bank levies, and tax liens. That’s why we work hard to ensure that you are given the lowest monthly payment allowable by law. Our tax professionals have up-to-date knowledge of current tax law and code, as well as special programs not known to the general public, to ensure that our clients have the best rates, the best information, and the best chance of success.
Financial freedom from IRS tax debt with Key Tax Group
Don’t take on the IRS alone: Let the tax professionals at Key Tax Group help you pay off your debt and achieve your financial goals with the streamlined IRS payment plan. To get started on your path to becoming debt-free, call us or fill out the form at the top for a free consultation today.