Installment agreements can be a fabulous option to get rid of your tax debt through set monthly payments. As long as you meet your obligation of the agreement, the IRS will not try to collect the tax debt through more aggressive means such as liens, levies, and wage garnishment.

If you owe $50,000 or less you may qualify for a streamlined installment agreement. You will not need to provide any financial information to the IRS if your debt is under $25,000 (and only limited financial information if your debt is between $25,001 and $50,000) to qualify for the agreement, as long as the debt can be paid in full within 72 months and in some instances up to 84 months under the IRS expanded criteria. If you owe the IRS more than $50,000 you will be required to submit financial information in order to establish an installment agreement with the IRS.

Streamlined Installment Agreement – Under $25,000

If you owe $25,000 or less and can pay off your debt within 72 months, you will qualify for what is called a “streamlined” installment agreement. This agreement is available regardless of whether you have already had a levy against you, and it will result in the release of the levy.

The main advantage of the streamlined installment process is that you do not need to provide any financial information to the IRS to qualify for the agreement, as long as the debt can be paid in full within 72 months. The minimum payment amount is $25 per month.

I can help you setup a streamlined installment agreement at a monthly payment amount you can afford. Once the agreement is set up, we can get the IRS to release existing levies immediately.

Streamlined Installment Agreement – $25,001 to $50,000

If you owe between $25,000 and $50,000, we can file an application for an installment agreement application on your behalf. IRS Collections personnel will review the application and verify your ability to pay.

This agreement is available only to individual taxpayers and out-of-business sole proprietors. Business entities do not qualify, but partners who are responsible for a partnership liability where the partnership is no longer operating do qualify.

Installment Agreement – $50,001 or More

If you owe more than $50,000 in overdue taxes, we will need to negotiate an installment agreement for you with IRS collections personnel. They will want to review a completed Collections Information Statement (Form 433-A, 433-B, or 433-F) to determine your living expense allowances and the amount you can pay each month in order to establish an agreement.

Whether you owe $10,000 or $100,000 in back taxes, an installment agreement may be the best debt relief option for you. However, you might qualify for other types of tax debt relief as well. I will look at your whole situation and develop a realistic plan tailored specifically to you.