Posted by Fletcher Accounting and Tax Service Inc.

Request a Partial Payment Installment Agreement

Request a Partial Payment Installment Agreement

Tax season is a yearly headache for all of us, and requesting a partial payment installment agreement may very well be the best way to alleviate some of that stress. Paying your taxes in a bulky lump sum is hardly ideal, so you may want to stick around and find out how to make the arrangement. Dealing with the IRS isn't the nightmare that people generally imagine. If you know the rules and you pay close attention to the finer details, you can set up a partial payment installment agreement in less than 2 hours.

Getting out of tax debt is a major priority for the vast majority of the population. Sometimes, however, it's difficult to see the wood for the trees. Entering into a partial payment installment agreement helps make getting out of tax debt a whole lot easier. The agreement requires that regular payments be made to the IRS on a monthly basis. A monthly rate is agreed upon in advance, as well as a predetermined payment term. Once the terms of the agreement are fulfilled, any remaining tax debt is lifted, and the taxpayer no longer has to pay the original balance in full.

Here's How

Start off by consulting with a seasoned tax professional who specializes in the handling of tax debts. Take the time to discuss the topic and ask any questions that need answering. You need to be sure that you understand your options -- make sure all the cards are on the table. Chances are you're going to need some help negotiating a suitable monthly payment. A professional can help you with this. Don't back yourself into a corner and agree to an installment agreement you can't afford. If you feel that you're working with a tax professional that doesn't know everything there is to know about the laws governing IRS debt collection, you may need to keep looking until you find one who does. The old adage rings true in this case; you really do need to be safe rather than sorry.

Once you've found a tax professional who can assist you, you'll need to find out precisely how much you owe in unpaid taxes, interest, and penalties. Contact the IRS to find the information you need. Chat with your tax professional and get some help in calculating a reasonable offer to propose to the IRS. Next, you'll need to fill in an Installment Agreement Request (Form 9465). A professional can help you navigate each section of the form and calculate any complex equations that pop up.

You'll also need to fill out a Collection Information Statement (Form 433-A) and attach three months' worth of backup documentation for the income and expenses you've mentioned in the form. The IRS also requires a letter stating, in detail, your request for a partial payment installment agreement.

Submit all your paperwork to the IRS Revenue Officer in charge of your case. Alternatively, you can submit the papers to the Automated Collection System unit or to an IRS Service Center nearby. It generally takes around 30 days to hear back from the IRS. They may request additional documentation and propose liquidation of your assets instead of the partial payment installment agreement.

Should your request be approved, you'll need to keep an eye on your payments and make sure that your installment is on time each month to avoid incurring any further penalties.

Fletcher Accounting and Tax Service Inc.
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