When a taxpayer owes more taxes than he can afford to pay immediately, the IRS is often willing to allow the taxpayer to enter into an Installment Agreement for the payment of the taxes. By entering into an Installment Agreement, the taxpayer agrees to pay the entire tax liability in monthly installments over a period of five years or less. Installment Agreements are available to individual taxpayers as well as businesses.
Generally, the IRS will conduct a thorough examination of the taxpayer’s financial situation to determine how much he can afford to pay each month until the entire tax liability is paid. IRS collection activity, including levies and liens, are usually frozen while the Installment Agreement is being negotiated and while the taxpayer remains in compliance with the accepted Agreement terms.
For more information about the Installment Agreement program and to see if it might be appropriate for you, contact Kevin E. Thorn today at (240) 235-5096.