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10000 Tax Debt

22nd March 2010
By ConnorBringas in Taxes
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Paying off tax debt is a difficult thing to do. Especially if you have no money to pay off such a large lump sum of debt. Especially if its 10,000 dollars worth! In this instance there is a way to pay off your debt easily and quickly. This is called an Installment agreement between the IRS and you. There are four different types of installment agreements offered by the IRS. The important thing to know is which installment agreement you qualify for. Knowing this allows you to inform your tax accountant when he or she talks to the IRS. The four types of Installment agreements are:
1.Guaranteed Installment Agreements
2.Partial Payment Installment Agreements
3.Streamlined Installment Agreements
4."Non-Streamlined" Installment Agreements

Guaranteed Installment agreements
In Guaranteed Installment agreements, the IRS is required to agree to an installment plan if the amount you owe is less than 10,000 dollars. Also you must meet the following criteria:

All of your tax returns are filed

You must agree to file on time and pay your taxes on time in the future
You haven't received an installment agreement in 5 years
In the previous 5 years you haven't filed late or paid late
Your monthly installment agreement will pay off your tax debt in 36 months or less

The benefit of filing for a guaranteed installment agreement is that the IRS wont file a tax lien against you. Tax liens negatively effect your credit and therefore effect your ability to obtain credit.

Partial payment installment agreements
In partial payment installment agreements, the monthly payment is based on what you can actually afford after taking into consideration your essential living expenses. A partial payment plan can be set up to cover a longer repayment term, however, the IRS may file a federal tax lien to protect its interests in collecting the debts. The IRS asks that you fill out a financial statement so they can evaluate your income and living expenses in the last three months. This will allow them to determine how much you are willing to pay each month.

Streamlined Installment Agreements

Similar to guaranteed installment agreements, the IRS will approve an installment plan if your debt is 25,000 dollars or less and you agree to pay off your debt in 60 months or less. You must fit the same criteria needed to be approved for a guaranteed installment agreement. The benefit of both these agreements is the fact that the IRS won't file a tax lien or ask you to fill out a financial statement to analyze your current financial situation.

Non-Streamlined Installment Agreements

The only reason that you wont be able to apply for a streamlined plan is that your debt is over 25,000 and therefore you do not qualify for streamlined. In this case, you must negotiate with an IRS agent for your own installment plan. This plan will then be re-routed to an IRS manager for review and approval. The IRS will file a tax lien against you as well as ask that you fill out a financial statement so they can best review your current financial situation. In most cases they ask that you attempt to sell of any assets, take out a bank loan, or home equity loan so you can pay off the IRS without getting an installment agreement.

If you have any tax problems, you should seek out a tax professional to analyze your current situation and help figure out which plan best suites you. They also can talk to the IRS on your behalf and help you through trying times ahead. If your debt is small, or as big as 10,000 dollars we can help! To help you with your tax debt, we ask that you fill out THIS FORM! Its fast and easy!
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