Installment Agreements: Which one is right for you?
In my Middleburg, FL practice I find that a lot of people who owe the IRS are eligible for installment agreements. Installment agreements allow you to pay the IRS over time rather than all at once. The IRS will continue to charge interest and penalties, of course, so it is always better to exhaust your other options for getting the money first. If there are no other options, installment agreements can be a great way to make a large debt manageable and get the IRS off your back. There are four types of installment agreements available to choose from: 1. Automatic: This option is available if you owe the IRS less than $10,000, you have not owed any tax or had an installment agreement in the last five years, and you agree to pay the full amount owed within three years. This option is great because it is easy to apply for online or via Form 9465 with your tax return and you do not have to provide the IRS with any financial information. 2. ...