An IRS installment agreement is one of the best ways to resolve your tax debt problems. You can avoid most types of IRS collection actions and pay off several years of tax debt as long as you make your monthly payment.
Key Insights We Will Discuss:
Why IRS installment agreements are such a popular tax resolution option.
How an installment agreement protects you from IRS levies and liens
How you can modify your installment agreement should you need to
Benefit #1: Avoid IRS Levies
The IRS can seize your bank account or wages to collect back taxes. If you enter into a payment plan, the IRS will generally stop pursuing any type of levy as long as you make your monthly payments.
The one exception is a tax refund offset. The IRS may continue to seize your tax refund checks until your debt is paid off in full.
Benefit #2: Pay Off Several Years of Tax Debt
If you owe tax debt for several years, you may receive a separate set of notices for each year. You may become confused and overwhelmed when trying to figure out what you owe for each period in back taxes, penalties, and interest.
You can pay off multiple years of tax debt with one monthly payment. Before you start, have a tax attorney request your tax transcripts to determine how much you owe for each period.