Installment agreements

Pay Your IRS Tax Debt In Installments
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Installment agreement Attorney In Chicago, Illinois

Exploring Eligibility and Payment Options

An Installment Agreement (IA) with the IRS is a formal payment plan that allows taxpayers to pay their tax debt over time in smaller, more manageable amounts. It is a structured arrangement that enables individuals to fulfill their tax obligations while avoiding more severe collection actions from the IRS.


Key features of an Installment Agreement include:


Eligibility: Most taxpayers are eligible for an Installment Agreement, but the IRS will assess financial information to determine the appropriate terms.


Payment Amount: The monthly payment amount is based on the taxpayer's ability to pay and is determined by factors such as income, expenses, and the total amount owed.


Types of Installment Agreements: There are different types of Installment Agreements, including:


Guaranteed Installment Agreement: This is for taxpayers who owe $10,000 or less and have filed all required returns.


Streamlined Installment Agreement: For taxpayers who owe $50,000 or less and need to pay within 72 months.


Non-Streamlined Installment Agreement: For taxpayers who owe more than $50,000 or need more than 72 months to pay.


Automatic Approval: The IRS generally automatically approves Guaranteed Installment Agreements and Streamlined Installment Agreements if the taxpayer meets the specified criteria.


Fees: There is an application fee for setting up an Installment Agreement, and the amount varies depending on the type of agreement and how it is established. Low-income taxpayers may qualify for reduced fees.


Direct Debit Agreement: Taxpayers can choose to have their monthly payments automatically debited from their bank account through a Direct Debit Installment Agreement, which often results in lower fees.


Maintaining Compliance: To avoid default, taxpayers must stay current with all filing and payment obligations while on an Installment Agreement.


Adjustments and Modifications: In some cases, taxpayers may be able to request adjustments or modifications to their Installment Agreement if their financial situation changes.


An Installment Agreement provides a structured and flexible way for taxpayers to settle their tax debt over time while avoiding more severe collection actions. It is essential to work closely with the IRS or seek the assistance of a tax professional to ensure the agreement is tailored to the individual's or business’s financial situation and to address any changes that may occur during the payment period.

Contact Benjamin Legal Services to schedule a consultation with a lawyer today. 312-945-0021

Partial Pay Installment Agreements

A Partial Pay Installment Agreement (PPIA) is a specific type of installment agreement with the IRS that allows taxpayers to make reduced monthly payments on their tax debt based on their ability to pay. This type of agreement is designed for individuals or businesses who may not be able to fully pay off their tax liabilities through regular installment payments.


Key features of a Partial Pay Installment Agreement include:

Reduced Monthly Payments: With a PPIA, taxpayers make monthly payments lower than required under a standard installment agreement. The reduced amount is based on their financial situation and ability to pay.


Financial Analysis: The IRS conducts a detailed financial analysis to determine the taxpayer's ability to pay. This analysis considers income, expenses, assets, and liabilities to calculate the reasonable collection potential.


Remaining Debt Forgiveness: Unlike a traditional installment agreement, a PPIA may not fully pay off the tax debt over the agreed-upon payment period. After the completion of the payment period, the IRS may forgive any remaining unpaid tax debt.


Periodic Review: The IRS may periodically review the taxpayer's financial situation to assess whether adjustments to the installment agreement are necessary. The IRS may increase the monthly payment amount if the taxpayer's financial condition improves.


Term of the Agreement: The term of a Partial Pay Installment Agreement can vary, and it is determined based on the IRS's assessment of the taxpayer's ability to pay. The agreed-upon term may be several years.


Application Process: Taxpayers provide detailed financial information and propose a monthly payment amount based on their ability to pay.


Application Fee: There is an application fee for setting up a Partial Pay Installment Agreement. Low-income taxpayers may qualify for reduced fees.


Full Compliance: Like other installment agreements, taxpayers must remain in full compliance with all filing and payment obligations while on a PPIA to avoid default.


A Partial Pay Installment Agreement is a viable option for taxpayers facing financial hardship who cannot afford to pay their full tax debt. It provides a structured way to address tax liabilities while taking into account the taxpayer's financial limitations. As with other IRS installment agreements, seeking professional advice or guidance from our tax attorneys is advisable to navigate the application process and ensure the agreement aligns with the individual's financial situation.

Contact Benjamin Legal Services to schedule a consultation with a lawyer today. 312-945-0021

Chicago Installment payment attorneys

With Benjamin Legal Services in Chicago, Illinois, taxpayers can effectively manage their tax liabilities, seek adjustments when needed, and avoid severe collection actions. Individuals and businesses can confidently navigate the complexities of tax resolution and the Internal Revenue Code by proactively engaging legal support, securing a path toward financial stability, and resolving outstanding taxes. Call us at 312-945-0021 to schedule a consultation.

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