Taxshark LLC can assist you in negotiating an installment agreement with the Internal Revenue Service whether it be a short term agreement or longer term agreement.
There are several options in installment agreements as follows:
- Direct Debit Installment Agreements
- Conventional Installment Agreements (requires Collection Information Statement Form 433-A)
- Payroll Deduction Installment Agreements (Individuals)
- Streamlined Installment Agreements
- Express Installment Agreement (Business)
DIRECT DEBIT INSTALLMENT AGREEMENT
The agreed upon monthly payment is direct debited from a bank account each month. A Collection Information Statement may or may not be required dependant on the amount of the liability owed. Penalty and interest will continue to accrue during the term of the installment agreement.
CONVENTIONAL INSTALLMENT AGREEMENT
The taxpayer pays the monthly amount agreed to either by mail or by an online payment. The Internal Revenue Service may or may not send you monthly reminder notices. The responsibility is on the taxpayer to make these payments on time and in the proper, agreed to monthly amount. Penalty and interest will continue to accrue during the term of the installment agreement.
PAYROLL DEDUCTION AGREEMENT
The agreed to monthly amount is deducted from the taxpayer’s weekly, bi-weekly, bi-monthly or monthly paycheck. This is an agreement between the Internal Revenue Service, your employer and you, the taxpayer. Penalty and interest will continue to accrue during the term of the agreement.
STREAMLINED INSTALLMENT AGREEMENTS
An installment agreement in which the taxpayer is given a specified number of months (currently 72) to satisfy the entire tax liability, inclusive of all penalties and interest. This type of installment agreement is limited to a particular dollar amount. No Collection Information Statement is required; there is certain basic financial information that is required. There is no Notice Federal Tax Lien filing associated with this type of agreement unless the agreement defaults, in which case the Internal Revenue Service may file a Notice of Federal Tax Lien. Penalty and interest continues to accrue during the term of the agreement.
NOTE: In situations where the Internal Revenue Service does not file a Notice of Federal Tax Lien, either due to the statutory amount owed or by its own discretion, the Internal Revenue Service may file a Notice of Federal Tax Lien upon the default of any installment agreement.