IRS Installment Agreement

Experienced Florida IRS Installment Agreement Attorney

For individuals or businesses facing financial constraints that prevent them from paying their entire tax bill in one go, opting for installment payments can offer an accessible and cost-effective means of meeting legal obligations while sidestepping additional complications. This agreement prevents the IRS from taking further collection actions, sparing you from concerns like wage garnishment or asset seizure.

A Florida IRS installment agreement attorney can help you negotiate an agreement favorable to you and the IRS. Depending on the amount owed, a lien may sometimes be filed as part of the agreement’s terms. It’s important to note that even with this agreement, the IRS will continue its efforts to get as much tax as possible. Without legal representation, you might end up with terms that are difficult to uphold. If you default on the Installment Agreement, the IRS may resume aggressive collection tactics. Contact me at (407) 749-0080 for a free consultation.

Contact Lewis Roberts at (407) 749-0080 to book a free phone, video, or in-person consultation.

Why Choose Lewis Robert?

When resolving IRS tax matters in Florida, choosing the right attorney can make all the difference. As a seasoned legal professional with experience in tax law, I am dedicated to providing top-tier representation for individuals and businesses navigating IRS installment agreements.

Here are a few compelling reasons why I believe I’m the right choice for your tax resolution needs:

1. Knowledge of Tax Laws

Understanding the intricacies of tax laws, and how the IRS collects, is crucial when negotiating with the IRS. I have an in-depth knowledge of specific tax regulations, ensuring I can navigate the complexities unique to Florida residents and businesses.

2. Strategic Approach

I approach each case strategically, carefully analyzing the client’s financial situation and crafting a customized plan to secure the most advantageous installment agreement terms. This proactive approach helps minimize financial strain and ensures compliance with IRS regulations.

3. Comprehensive Understanding of IRS Procedures

Navigating the labyrinth of IRS procedures and regulations can be daunting for individuals and businesses. I am familiar with IRS processes, which gives me the insight needed to streamline negotiations, minimize delays, and maximize the chances of securing a favorable installment agreement.

4. Strategic Negotiation Skills

Negotiating with the IRS demands a delicate touch, keen negotiation skills, and a thorough understanding of tax law. I excel in these areas, leveraging my extensive knowledge to advocate for my clients and secure installment agreements that are fair and manageable.

What Is an IRS Installment Agreement?

An IRS installment agreement is a mutual payment arrangement between a taxpayer and the IRS. The taxpayer commits to making regular monthly payments toward their outstanding tax debt in this arrangement. In return, the IRS agrees to cease collection actions, like levies, as long as the taxpayer complies with their tax obligations and fulfills the installment agreement.

While installment payments offer advantages, there are also disadvantages. The primary benefit is that an active installment agreement halts IRS collection efforts, allowing you to settle your debt at a manageable pace. However, these plans can be a costly method of repaying IRS debt. Although collection efforts may stop, the IRS will continue to accrue interest on the debt, often at a rate ranging between 4% and 6%. Consequently, this could result in paying more to the IRS through this approach compared to resolving the debt using an alternative method.

Determining whether a monthly installment plan is in your best interests hinges on various factors. Given the importance of the decision, pursuing this option alone is not advisable. A Florida IRS installment agreement attorney can assist you in devising a tailored plan based on your priorities, tax obligations, and financial capacity. It’s worth noting that installment agreements are not always guaranteed. Depending on factors like the type and amount of tax debt, its age, and individual circumstances, negotiating such an agreement can range from straightforward to highly difficult.

Types Of IRS Installment Agreements

When it comes to establishing installment agreements with the IRS, there are various options available. Some agreements are straightforward, while others require careful negotiation, contingent on a taxpayer’s specific circumstances and priorities. A Florida installment agreement attorney can offer valuable guidance in determining the best fit for your situation.

1. Guaranteed Installment Agreement

This option applies to those with a tax debt of less than $10,000 to the IRS, excluding penalties and interest. Typically, this payment plan spans 36 months and necessitates current return filings.

2. Streamlined Installment Agreement

There are two types: one for tax debts under $25,000 and another for debts between $25,000 and $50,000. The IRS may consider waiving a tax lien if taxpayers can repay their back taxes over 72 months and agree to a direct deposit arrangement.

3. Partial Payment Installment Agreement

This arrangement is suitable when the tax liability won’t be satisfied within the statute of limitations on collections. It allows the IRS to accept lower monthly payments, preventing enforced collection actions. The IRS is cautious about granting these agreements since it means not collecting the full owed amount. Negotiating this option with the IRS requires care and may not always be granted. Depending on your circumstances, I can assess whether this is the best route or if an Offer in Compromise settlement would be more suitable.

4. Graduated Installment Agreement

This agreement involves paying off the tax liability over time, with payments starting small and gradually increasing. For instance, a taxpayer might pay $500 per month in the first year, then increase to $750 per month in the second year, and so forth. While it may offer a more manageable option for a taxpayer seeking assistance, it’s important to note that interest accumulates more rapidly due to the lower initial payments. Again, the suitability of this option hinges on an individual’s specific situation and objectives.

5. One-Year Rule

Occasionally, the IRS may permit an installment agreement with a substantially lower monthly rate for the first year than subsequent years (typically years two to six). This allows taxpayers a chance to stabilize their finances before the standard higher payments commence.

Here Is How I Can Help With Your Case

Thorough Case Analysis

I will conduct an in-depth review of your case, considering all relevant factors, including your financial situation, outstanding tax liabilities, and any previous interactions with the IRS. This analysis will be the foundation for developing a tailored strategy that aligns with your goals and objectives.

Documentation Preparation

Proper documentation is crucial in any tax-related matter. I will assist you in preparing all necessary paperwork, including financial statements, income documentation, and any other relevant information required by the IRS to support your case.

Communication With IRS Representatives

I will serve as your liaison with the IRS, handling all communications, inquiries, and negotiations. This will help streamline the process and ensure that your interests are represented effectively, allowing you to focus on other aspects of your life.

Resolution of Outstanding Issues

In addition to addressing your installment agreement, I will work to identify and resolve any underlying issues contributing to your tax liability. This may involve exploring options such as penalty abatement or other potential avenues for relief.

Resolution of Disputes and Appeals

If any disputes or complications arise during the negotiation process, I will proactively address them, working toward an amicable resolution. If necessary, I can also pursue an appeal on your behalf.

Ongoing Support and Guidance

Throughout the process, I will provide you with clear and concise updates on the progress of your case. I am committed to keeping you informed and empowered, ensuring you are fully aware of the steps taken on your behalf.

You need an experienced installment agreement lawyer to handle your installment agreement case. Contact Lewis Roberts at (407) 749-0080 to schedule a free phone, video meeting, or in-person consultation.

How Installment Agreements Work

To be eligible for an IRS payment plan, you must first ensure that all outstanding tax returns are filed.

Following this, the IRS will assess the monthly expenses they deem acceptable (aligned with your actual monthly expenses). Your payment to the IRS will be the difference between your monthly income and these allowable expenses.

It’s important to be aware that while a request for an Installment Agreement is under review, in progress, or for 30 days after such a request is declined, the IRS may file a Notice of Federal Tax Lien against you. However, they cannot seize your property or income during this time.

Additionally, the IRS will request a personal financial statement; if you own a business, they will ask for a business statement.

It is crucial to ensure that all tax returns have been filed and that you fully disclose all your assets, including cash and bank accounts.

Once you initiate monthly payments under the Installment Agreement, they will continue until the outstanding tax liability is completely settled or until the statute of limitations expires.

Frequently Asked Questions

What is the maximum duration of an Installment Agreement? 

Under an approved payment plan, you can extend the period for up to 72 months (six years) to settle a current tax liability through monthly installments.

How much am I required to pay per month? 

The IRS will expect your monthly payment to include a portion or the entirety of your disposable income, which remains after covering your essential living expenses. The IRS employs its own criteria to define necessary living expenses and the amount you should allocate, considering factors like household size and geographical location. It’s not uncommon for individuals or families to have actual expenses that surpass the guideline amounts, leading to potential disagreements with the IRS regarding the necessity of certain expenses.

What if I can’t afford the monthly payment after considering necessary living expenses?

In such instances, entering into an Installment Agreement with the IRS might not be possible. However, alternative options may still be available. Consult our office regarding potential tax relief solutions.

Are there any reasons to avoid negotiating an Installment Agreement with the IRS?

It’s essential to recognize that penalties and interest can continue to accrue on the original owed amount throughout the entire duration of your installment plan. The severity of these penalties hinges partly on whether you filed your return on time, filed it late, or didn’t file at all. If the penalties and interest become substantial, and you have the means to make a lump sum payment, it’s advisable to consult me to explore whether an Offer in Compromise might be a more suitable resolution.

Contact a Florida IRS Installment Agreement Attorney

If you are facing IRS installment agreement challenges in Florida, choosing the right attorney to handle your IRS installment agreement is a critical decision. With my experience, track record, and client-centered approach, I am confident I can provide you with the exceptional legal representation you deserve. Contact me at (407) 749-0080 for a free consultation.