INSTALLMENT AGREEMENT

An IRS Installment Agreement, or IA, as defined by the IRS, will "allow for the full payment of the tax debt in smaller, more manageable amounts." In other words, you repay your tax debt over a period of time which is commonly no longer than 60 months (5 years) depending on the type of installment agreement you go with. Installment Agreement carry an interest rate and penalties which means the longer you take to pay off your tax debt, the more you end up paying in the end (more than original balance). There are other types of Installment Agreements above 25k, they are just harder to obtain. Knowing which IA to use and the requirements that need to be met is important before going through the steps of how to file an IA. In general, if you do not have money left over each month after your living expenses are accounted for (and the IRS has their own set of acceptable monthly expenses), then an IRS Installment Agreement is not the best fit for you. If you realize that you do have discretionary income after your living expenses are computed, make sure that your monthly IRS payment ends up reducing your principal tax balance (when taking into account interest and penalties) each year, otherwise you could digging yourself a bigger hole.

Contact us today and we will help you secure an installment agreement with the IRS that can meet your needs while appeasing the demands of the IRS. The expert financial professionals at Barouti Financial Services are here to help you secure your financial future. Don’t wait – call us today!