Installment Agreements

Installment Agreements

Sometimes, your best course of action when dealing with IRS Collections actions is a negotiated Installment Agreement (IA). The IRS offers different types of IA’s depending on the facts and circumstances. For Guaranteed and Streamlined IA’s, you do not have to complete forms showing your financial statements. There are dollar limits, however, in qualifying for Guaranteed and Streamlined IA’s. Guaranteed IA’s max out at $10,000 of liability paid over 36 months, while Streamlined IA’s can go as high as $50,000 and are payable over 72 months.

Expanded IA’s may be an option for you if your tax liabilities exceed $50,000, but are less than 100,000. Expanded IA’s offer up to 84 months to be paid. You will not need to provide financial information for the Expanded IA if you agree to make payments through payroll deductions.

Regular IA’s have no liability limits and require full financial information disclosure. Regular IA’s extend as long as the law permits. The law generally gives the IRS 10 years to collect taxes once they have been assessed. This means that your Regular IA can extend as long as the IRS has legal authority to take collection action against you.

Partial Payment IA’s apply when based upon your financial circumstances, you will not be able to pay your tax liabilities in full within the IRS collection period. In this circumstance, you will pay what you can afford for the remainder of the IRS collection period.

IA Negotiation & Approval D’Arco Tax Resolution utilizes the IRS rules to get you the lowest IA payment amount possible for your financial situation. The IRS will not approve your IA until you have filed all your income taxes to date. Additionally, the IRS requires you to be current on your estimated taxes at the time of your IA request.