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Five Basic Truths About Installment Agreements

Five Basic Truths About Installment Agreements

Paying back tax deficit could be burdensome on the current income of the affected taxpayer. To avert such burden, the IRS set up a program called the installment agreements. The installment agreement is the IRS program whereby the taxpayers are allowed to pay tax deficits in tranches and in smaller amounts over a specified period of three (3) to five  (5) years. The individual taxpayer with a tax deficit of less than $25,000 benefits from the program. To enable repayment of tax deficit, IRS put in place Installment agreements thereby discouraging tax avoidance of the taxpayers.

The installment agreements program has enabled the effective recovery of tax deficit, thereby freeing up more fund for the government of the nation to deliver on her promises to the people of the state. As awesome and amazing the installment agreements program is, the taxpayers need to be educated on the truths about the program to have the taxpayers maximize the program to their advantage.

Some five (5) basic truths about installment agreement are;

EASE OF TAX PAYMENT

Installment agreement makes the payment of tax deficit easier for the defaulting taxpayers.  The taxpayers are allowed to repay the tax deficit of their current income in bits over a specified period of time; enabling the taxpayers to clear the deficit, thereby also making funds available to the government through the IRS. An installment agreement is a win-win program for both the taxpayers and the IRS. With the ease in the repayment plan, the taxpayers are able to maintain the same style of living thereby not making them worse off.

AFFORDABILITY OF TAX REPAYMENT

The payment of tax deficit is made affordable to the taxpayers by the IRS through the Installment agreement program. The huge amount of the tax deficit could be terrifying to the taxpayer when considered in bulk. With the Installment agreement program of the IRS, the taxpayer is made capable of repayment in tranches hence making the repayment affordable. The affordability of repayment ensures that the IRS recoups the tax deficit from the taxpayer over a specified period of time while the taxpayers do not feel the pain of tax deficit repayment.

MAINTAINED STANDARD OF LIVING

The living standard of taxpayers could be drastically affected were they to repay the entire sum of the tax deficit at once. This could impoverish the lives of affected taxpayers and have a ripple effect of diminishing the general standard of living in the nation. To avert this, the IRS’s installment agreement program comes in handy. The installment agreement program makes it possible for the taxpayers to repay tax deficit while maintaining the current standard of living. This makes for undeterred repayment yet comfort while repaying the tax deficit. 

PROVISION FOR SAVING DEPOSIT

The installment agreement program of the IRS makes provision for the taxpayers to have saving deposit; no matter how little. Saving deposit is money kept, but not spent to enable the maximization of opportunities as they present themselves. The taxpayers are able to set aside some amounts to take care of their contingency needs. Had the taxpayers been requested to repay the tax deficit bulk amount at once, the privilege of having saving deposit in preparation for the days ahead would have been discarded. The Installment agreements program makes for a better life for the affected taxpayers by not belaboring them as they repay the tax deficit.

REDUCE DEFAULTERS

The Installment agreement program of the IRS reduces the level of tax deficit default to a minimal level. Taxpayers being encouraged and allowed to pay back their tax deficit over a period of time makes for close to zero-level of default. The IRS is able to coup back the tax deficit with a little interest rate attached and the taxpayers are able to repay the tax deficit at more comfort. This allows for all defaulters to subscribe to the program and maximize the benefits the installment agreements program have to offer. 

The Installment agreements program of the IRS is a great development for the benefit of all parties; the taxpayers, the IRS, and the government involved. By leveraging on the comfort of the taxpayers, the IRS is able to recoup nearly all the tax deficit from taxpayers even at a little percentage of interest yet not burdening the affected taxpayers. The taxpayers will joyously repay the tax deficit owed because of the spread length of time it is allowed to pay it in. The installment agreement program is hence a win-win for both the IRS and the affected taxpayers because, at the expiration of the agreement, the IRS would have succeeded in collecting all the tax deficit with a percentage interest as other income and the taxpayers would have successfully paid its tax deficit with convenience.

The installment agreements program of the IRS is truly a taxpayer's friendly program; which must be embraced and maximized for the advantage of the taxpayers.

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