What you need to know about an IRS installment agreement

As the cost of living continues to rise, many Americans are facing difficulties in keeping up with their bills, including their tax bills. The Internal Revenue Service (IRS) has released its Strategic Operating Plan, which outlines its plans to hire almost 20,000 new staff members over the next two years and allocate $80 billion in new funds. This includes hiring 7,239 enforcement staff between 2023 and 2024. In light of this, taxpayers need to be aware of their rights and payment options if they owe money to the agency. The most commonly used payment option is an installment agreement.

If you owe taxes to the IRS, you can establish an installment agreement to pay them off over an extended period of time. The IRS offers two types of payment plans: short-term (pay in 180 days or less) and long-term. If you can pay your taxes in full within the extended time frame, you should request a payment plan. If you qualify for a short-term payment plan, you won’t have to pay a user fee. There are different types of installment agreements available, including guaranteed installment agreements, streamlined installment agreements, and partial payment installment agreements (PPIA), among others. It’s best to work with your accountant to determine which option is best for you

Are you considering requesting an installment agreement from the IRS? 

If so, it’s important to know that the response time for your request is just 30 days. However, a rejection from the IRS could have catastrophic consequences. Don’t take chances – seek the assistance of a professional accountant or attorney who specializes in IRS Representation. The IRS has a complex administrative system, with ever-changing internal revenue codes and manuals. Competent IRS Representation can be an invaluable asset when dealing with the IRS. Let us help you make this process as stress-free as possible.