The IRS Installment Agreement & all related important things!

If you are here, then you are entirely familiar with the IRS Office in Tampa. Well, pay your taxes to the IRS is not such an easy job. But why the IRS? Well, they are like the secretary of the government. It is an agency that is in charge of handling all your taxpaying needs. As in, it collects the tax from you to pay the government. It assists the government to get the tax from you and then give it to them with all the interest fees and penalties added to it. Moreover, there are a lot of methods by which the person who has to pay the tax, through which he can pay it. Some options are the credit card loan, extending the period and even giving in installments with the IRS installment agreement.

The IRS that is also called Internal Revenue Service permits all the taxpayers to remove all their debts with the IRS installment agreement. Moreover, the IRS always advise those who need to pay the tax that they should pay altogether and on time since there is a lot of high-interest rates and as well penalties for late payment. They do this since the interest rates along with the penalties are usually equal to 8-10% for one year, which can be really heavy on your pocket. This is why the IRS installment agreement online is not a favorable option always.

If you are still not eligible and financially able to pay the entire amount of debts all at once, that is when the IRS installment agreement form helps you out. This helps you in such a way where you can pay your debts in the form of installments, but do keep in mind that this type of payment may cause you to pay more due to the penalties and the interest rates on it. If you are not sure about what to do, you can contact Tax Law Tampa of just give a call on the IRS installment agreement phone number. Moreover, there are 4 types of installment agreement forms:

  • Non-streamlined
  • Streamlined
  • Guaranteed
  • Partial payment

Non-Streamlined IRS Installment Agreement form

If you are a taxpayer and you owe the IRS about $50,000 or more, there is an option for you to pay back in the form of installments. This is called the non-streamlined IRS Installment Agreement. Moreover, there is no way that the IRS would easily approve for this, you would have to convince them and negotiate with them till they do so. You might also have to file the form 433-F that is the Collection Information Statement. You would have to fill the form with information like living expenses, income, debts, assets, the installment payment amount and the accounts of the taxpayer.

The IRS would talk a few months after you fill the IRS installment agreement form, for the IRS to review the request. Moreover, they would be the ones who would be the ones who would propose the payment plans where your recommendations are just taken into consideration. And if they feel that you are able to pay altogether or that your living expenses are unnecessary, then they might reject the proposal. Moreover, if the information provided is not valid or if you have not completed an installment for the previous debts arrangements, the IRS would not approve the IRS installation agreement online that you have sent.

If you are not able to pay with this type of IRS installment agreement online, then consider filling the Offer in Compromise one.

Streamlined IRS Installment Agreement Online

Now, with the idea that is ruling your mind, let us use it to talk about the streamlined IRS installment agreement. It is eligible for those taxpayers whose total amount after adding all the interest and penalties with the amount they owe, and it comes out to be below $50,000. This agreement allows the person to pay all the dues within 72 months. Moreover, the payment that is proposed by the IRS then is either equal or greater than the least amount that is acceptable. Here, the minimum amount is the amount that is higher than the $25 or after adding all the amount with the penalties and the interest and dividing it by 50.

This IRS installment agreement form has a fee as well. Moreover, the direct debit IRS installment agreement form has a fee as well but a reduced one. Furthermore, to reinstate or restructure an installment agreement that was in place in the past, also has a completely different fee. The federal tax lein is not filed by the IRS in this agreement method.

Guaranteed IRS Installment Agreement form

The guaranteed installment agreement by IRS can be adopted only if the taxpayer has the amount less than $50,000. But this does not have the penalties and the interest rates included in the total cost. Moreover, the taxpayer has been filing tax returns during the last five years and has even paid the taxes that were owed. Furthermore, the person should not have got into any IRS installment agreement during the previous five years.

The person is allowed to get this agreement only if they are not able to pay all the tax during the due time or within the 120 days given to them. This allows them to pay all the amount owe within three years where the person has to pay at least the minimum monthly payment every month. This amount is determined by adding the penalties, liability and the interest together to divide it by 30. A federal tax lien would not be filed by the URS against the taxpayer through this agreement.

Partial Payment Installment Agreement by IRS

In this type of IRS installment agreement, the taxpayer makes a deal with the IRS to pay the partial payment of the amount the person owes the IRS of the tax liability. Moreover, the taxpayer would have to fill the form called the Form 433-F to show their living expenses and their income. This is so that the person could be qualified for their arrangement by the IRS after they have evaluated and verified the information. Moreover, if the individual has some property that can be sold so that he or she can pay the taxes, the IRS would need all the information on it.

Another thing about this IRS installment agreement is that, if it gets an approval, the person would have to be a part of the financial review that takes place every two years. Moreover, this can lead to the termination of the agreement or an increase in the installments.

Methods to make the payments for the IRS installment agreement

The methods that the taxpayers can use to take care of the installments are:

  • Money order
  • Cheque
  • Direct debit
  • Electronic Federal Tax Payment System
  • Online Payment Agreement
  • Credit card
  • Payroll deduction


When does the IRS Revoke an IRS InstallmentAgreement? 

Aninstallment arrangement can be revoked by the IRS under the following situations:

  • The information on the Form 433-F is in accurate by the taxpayer.
  • After the agreement has been processed, the taxpayer does not pay the tax or file for the return of the tax.
  • A payment is missed by the taxpayer.
  • There is a change in their financial situation while the taxpayer is paying with the partial installment scheme.

What to do next?

Well, getting a huge tax bill on your head is not an easy thing to handle, and if you do not have any idea about the rules of the tax, it can get hard for you. So, you can contact a Tax Law Tampa attorney to help you deal with situations like this with ease. Visit today!


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