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Installment Agreement

Installment Agreement

If you're struggling with tax debt and can't afford to pay it all at once, consulting a tax attorney to negotiate an installment plan with the IRS might be a suitable option. This approach allows you to pay your overdue taxes in manageable monthly payments, helping you maintain a positive relationship with the tax authorities. Once an installment agreement is in place, professional assistance may reduce certain penalties.

Understanding IRS Installment Agreements
To qualify for an installment agreement, unfiled tax returns must be submitted first. A tax professional can then assist by submitting the necessary IRS form to request an installment plan. There's a fee for setting up this arrangement, and interest on the tax debt accumulates until the debt is fully paid.

Options for Installment Payment Plans
The IRS offers various payment plans. Some plans allow for minimal monthly payments until the statute of limitations expires, potentially forgiving the remaining debt. Other plans require full repayment with larger monthly payments. However, these payments are calculated to be manageable based on the taxpayer's financial situation. Making these payments consistently and on time is crucial to prevent defaulting on the plan.

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Only Large Debts Qualify
IRS Never Negotiates Terms
Penalties and Interest Stop Accruing
Only Individuals Can Apply
Professional Help Isn't Necessary

Only Large Debts Qualify

Myth

Only large tax debts qualify for installment agreements.

Fact

Installment agreements are available for both small and large tax debts.

IRS Never Negotiates Terms

Myth

The IRS never negotiates the terms of an installment agreement.

Fact

The IRS often works with taxpayers to create manageable payment plans.

Penalties and Interest Stop Accruing

Myth

Penalties and interest stop once an installment agreement is in place.

Fact

Penalties and interest generally continue to accrue until the entire balance is paid.

Only Individuals Can Apply

Myth

Only individual taxpayers can apply for installment agreements.

Fact

Both individuals and businesses can seek installment agreements.

Professional Help Isn't Necessary

Myth

You don't need professional assistance for an installment agreement.

Fact

Professional help can ensure you get the best possible terms and manage compliance.

Adult Day Care Coverage

Risk Factors

You may have to pay them for their services from your pocket if you hire a caregiver.

Solution

Policies may cover community care, which usually means adult day care, so you don’t need to pay them all by yourself.

Modifications to House Coverage

Risk Factors

You may need to build a wheelchair ramp for one of your family members because of their medical conditions.

Solution

Some policies may even pay benefits to family members who act as caregivers or cover home modifications, such as adding wheelchair ramps or installing safety devices.
Consultation

Choosing the Right Installment Agreement

The IRS has several installment plans, each with its own eligibility criteria. Getting an installment agreement is relatively straightforward, especially with the help of a tax attorney, when the tax owed is under a certain threshold. Consulting a tax attorney can help you navigate the process and select the most appropriate payment plan.

To explore this option further, consider contacting a tax attorney for a consultation.

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