| If you owe the Internal Revenue Service tax money | | | | Service will provide you with the breakdown and |
| and cannot pay in one lump sum, you may want to | | | | copies of your income tax filings. |
| seek to make an installment arrangement with the IRS. | | | | You might want to engage the services of a tax |
| In order to qualify for a partial payment plan with the | | | | resolution expert to help you in filing forms and applying |
| IRS you will need to be current with your most recent | | | | for a tax resolution installment option. After consulting |
| income tax filing and you must have submitted all | | | | him, you will have to arrive at a conclusion of how |
| previous years' income tax returns, as well. | | | | much you can afford to pay. In support of this |
| An installment agreement can be reached under the | | | | conclusion, you will need to provide the IRS with three |
| terms of partial payment. That is to say, that if you | | | | months documentation relating to your proposed |
| owe the IRS back taxes and you come to an | | | | income versus expenses. You will then need to send |
| agreement to make a settlement payment, say fifty | | | | the IRS a letter expressing your desire to resolve the |
| cents on the dollar, to satisfy the claim, you can make | | | | matter via an installment arrangement. Attached to the |
| those payments on an installment plan even though the | | | | letter, you will include all necessary forms and |
| IRS will not collect your debt in full upon completion of | | | | documentation. |
| payments. Once you have paid the agreed amount of | | | | When you receive the OK from the Internal Revenue |
| settlement, the IRS will forgive the balance. | | | | Service, make sure you do not miss any monthly |
| If you owe twenty-five thousand dollars or under, you | | | | payments. You will be offered the option to pay via |
| can usually take sixty months to pay on installment. If | | | | money order, check, credit card, automatic |
| you owe over twenty-five thousand dollars, you will | | | | withdrawals, or electronic transfer. The two electronic |
| have to negotiate the plans as per your situation. | | | | options (transfer, auto pay) are probably your best, as |
| Before going into this type of arrangement, you need | | | | they eliminate the possibility of missing paperwork or |
| to know exactly how much money the IRS has | | | | overdraft. |
| determined you owe, including interest and penalties. If | | | | Please note that while you are making your installment |
| you are uncertain about the sum, the Internal Revenue | | | | payments, penalties and interest will continue to add up. |