The Affordable IRS Tax Specialist, Since 1982.

Before you start paying off your back tax debt you want to find out if you are eligible for an offer in compromise to settle your debt for pennies on the dollar.Payment agreements should be a second consideration, must sure you are not a settlement candidate.

Call us today for a free tax consult.

If you’re financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement.

As long as you pay your tax debt in full, you can reduce or eliminate your payment of penalties or interest, and avoid the fee associated with setting up the agreement.

Before applying for any payment agreement, you must file all required tax returns.

• Individuals must owe $50,000 or less in combined individual income tax, penalties and interest, and have filed all required returns.

• Businesses must owe $25,000 or less in payroll taxes and have filed all required returns.

• If you meet these requirements, you can apply for an online payment agreement.
Even if you’re ineligible for an online payment agreement, you can still pay in installments

• Complete and mail Form 9465, Installment Agreement Request (PDF) and Form 433-F, Collection Information Statement (PDF);

Small Businesses with employees can apply for an in-Business Trust Fund Express installment agreement

• These installment agreements generally do not require a financial statement or financial verification as part of the application process.

• Find out if you qualify and how to apply.

Understand your agreement & avoid default

• Your future refunds will be applied to your tax debt until it is paid in full;

• Pay at least your minimum monthly payment when it’s due;

• Include your name, address, SSN, daytime phone number, tax year and return type on your payment;

• File all required tax returns on time & pay all taxes in-full and on time (contact us to change your existing agreement if you cannot);

• Make all scheduled payments even if we apply your refund to your account balance; and

Six Year Rule for Repayment of Tax Liability

The Collection Financial Standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay.

The vast majority of installment agreements secured by Collection employees are streamlined agreements, which require little or no financial analysis and no substantiation of expenses.

In cases where taxpayers cannot full pay and do not meet the criteria for a streamlined agreement, they may still qualify for the six-year rule.

The timeframe for this rule was increased in 2012 from five years to six years.

The six-year rule allows for payment of living expenses that exceed the Collection Financial Standards, and allows for other expenses, such as minimum payments on student loans or credit cards, as long as the tax liability, including penalty and interest, can be full paid in six years.

Taxpayers are required to provide financial information in these cases, but do not have to provide substantiation of reasonable expenses.

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