Request an IRS Installment Agreement

When you owe significant back taxes, with interest and penalties, seeing the full number in a letter from the IRS can be a gut-wrenching experience. If you do not qualify for an Offer in Compromise, the IRS will generally, at a minimum, require payments to be made over time, unless you qualify for a Not Collectable Status.

Though the IRS collects interest on these payment plans, an installment agreement is considered resolution, and if payments are timely made according to the agreement, you avoid getting your income levied and your assets seized. At Lothamer Tax Resolution, we’ll fight to negotiate a payment plan that you can live with, not one merely dictated by the IRS.

For anyone owing less than $50,000, a payment plan can be requested directly on line with the IRS. However, all required tax returns must be filed. Furthermore, the required payment must pay off the entire debt over the remaining statute of limitations, something you may not be able to accomplish.

A tax lien may be filed by the IRS in exchange for granting an Installment Agreement, unless you owe below a certain amount and elect to pay by direct debit.

The IRS offers short-term payment plans for those who can pay back what they owe in 180 days or less. But for those who owe more than they can pay in 180 days, or who cannot full pay over the remaining statute of limitations for collections, successfully obtaining an installment agreement that you can live with can be a difficult process to negotiate. Payment plans for large balances due are not automatic. Some repayment plan requests get referred to a local Revenue Officer and require an investigation of the person’s assets and income. IRS may tell you a large monthly payment is required because of the limited remaining time left for IRS to collect, but you may be entitled to what is called a Partial Payment Plan, one that is based upon your collectability (ability to pay), yet does not full pay the IRS before the statute of limitations runs out. At Lothamer, we have negotiated hundreds, if not thousands, of Partial Payment Plans. In many instances, this is better than filing an Offer in Compromise since it is faster and less expensive. Let Lothamer represent you and negotiate a realistic payment plan on your behalf, whether it pays off your balance or not before the time-period runs out for the IRS

If you owe a large sum to the IRS, and do not qualify for an Offer in Compromise, or want to know whether you qualify for an Offer in Compromise, get the experience of Lothamer to advise you, and if an Installment Agreement is required, Lothamer will help negotiate a realistic payment plan or even a Not-Collectable Status.