IRS Installment Agreement Attorney
If you cannot pay your full IRS balance immediately, an installment agreement may allow you to make payments over time. But the type of agreement, payment amount, and required financial information can vary substantially based on the amount owed and your financial circumstances.
Attorney Todd S. Unger helps individuals and businesses evaluate IRS payment options, review financial disclosure requirements, and determine whether an installment agreement or another tax-resolution strategy is more appropriate.
Types of IRS Payment Arrangements
Not every installment agreement works the same way. Some taxpayers may qualify for a relatively streamlined payment arrangement, while others may need to provide detailed financial information and negotiate a payment based on their ability to pay.
Simplified Payment Arrangements
Some taxpayers may qualify for an agreement without submitting a full financial statement, depending on the balance, tax type, filing compliance, and proposed payment terms.
Ability-to-Pay Agreements
When the IRS needs a closer look at your finances, the payment amount may depend on income, expenses, assets, and overall collection potential.
Partial-Payment Arrangements
In some cases, a taxpayer who cannot fully pay may be considered for a payment structure based on verified ability to pay and the time remaining for IRS collection.
Business Installment Agreements
Business cases can involve additional compliance requirements, especially when payroll or employment taxes are involved.
When Financial Disclosure May Be Required
The IRS may require detailed financial disclosure when a taxpayer does not qualify for a simplified arrangement, requests lower payments based on financial hardship, owes a larger or more complex balance, or is being reviewed by a Revenue Officer.
A financial review can include income, bank accounts, living expenses, real estate, vehicles, investments, business assets, accounts receivable, and other financial information.
The purpose is generally to determine what the IRS believes the taxpayer can reasonably pay. That makes accuracy, documentation, and consistency especially important.
How Form 433 Can Affect the Process
When financial disclosure is required, the IRS may request one of the Form 433 collection information statements. The correct form depends on whether the taxpayer is an individual, self-employed person, or business, and on the type of collection review involved.
Form 433 can affect how the IRS evaluates your monthly payment, allowable expenses, asset equity, and whether another collection alternative may be available.
Learn more in our guide to IRS Form 433-A, Form 433-B, and Form 433-F.
Need Help Setting Up an IRS Payment Plan?
Todd S. Unger can review your IRS balance, filing history, financial circumstances, and collection status, and help determine which payment or resolution option fits your situation.
What Happens If an Agreement Defaults?
An installment agreement can run into problems if you miss required payments, new tax balances arise, you don’t file required returns, or you otherwise fall out of compliance.
If the IRS proposes to terminate an agreement, the taxpayer may receive notice and an opportunity to address the problem. The exact rights and deadlines depend on the notice and the type of agreement.
If your financial situation has changed, you may be able to request a modification, reevaluate the payment amount, or consider another collection alternative instead of letting the account move back into active enforcement.
Is an Installment Agreement Better Than an Offer in Compromise?
Neither option is automatically better. The right choice depends on your income, expenses, assets, tax balance, compliance history, and the time remaining for IRS collection.
Installment Agreement
May be appropriate when you can repay the balance over time and need a structured monthly payment arrangement.
Offer in Compromise
May be worth evaluating when the taxpayer cannot reasonably pay the full balance and satisfies the applicable IRS requirements.
Learn more about eligibility and financial analysis on our IRS Offer in Compromise page.
Business IRS Payment Plans
Business installment agreements can be more complicated than individual income-tax payment plans, especially when employment or payroll taxes are involved.
The IRS may examine whether you are making current tax deposits, filing required returns, remaining viable, and whether responsible-person issues exist.
Businesses dealing with payroll tax debt can review our employment and payroll tax attorney page for additional information.
How an IRS Installment Agreement Attorney Can Help
IRS Installment Agreement FAQs
Need Help With an IRS Installment Agreement?
If you owe the IRS and cannot pay the full balance immediately, Todd S. Unger can help you evaluate payment-plan options, financial disclosure requirements, and possible alternatives.