At Pearson Butler, we have decades of experience serving individuals, businesses, and families across Utah in over a dozen practice areas. With more than thirty qualified legal professionals, we have the resources and experience needed to resolve even the most complex legal matters.
Installment Agreements for Individuals
Put the Tax Lawyers at Pearson Butler to Work for You
If your tax debt to the IRS is considerable, there are a variety of tax relief options that may help you repay your debt and reduce your stress. Pearson Butler can help you find the best solution to your tax debt and negotiate the best arrangements for you. You don’t need to worry about wage garnishments or tax liens once a skilled tax attorney is working on your case. Tax debt will no longer seem impossible, and you will be able to overcome your debt. One such option for tax debt relief is an installment agreement.
Is an installment agreement right for you? Find out by calling (800) 265-2314 or continue reading for more information on this key form of tax relief.
What Is an Installment Agreement?
An installment agreement is a contract between you and the IRS to pay back your debt in monthly payments, much like monthly payments for other forms of debt like credit cards or loans. Installment agreements will allow you to repay your debt over time and make your finances much more manageable. Installment agreements are a good choice for people who do not meet the requirements for other tax debt relief options like an offer in compromise.
How Do I Qualify for an Installment Agreement?
If your tax debt amounts to less than $25,000, you may qualify for a streamlined installment agreement. This agreement will require you to pay off your debt in monthly payments over the course of 60 months or less. As a result of the 2012 Fresh Start Initiative, you may qualify for a streamlined installment agreement if your tax debt is less than $100,000, as long as you can pay off your debt within 72 months. Your Utah tax attorney can help you fill out the required forms and submit them to the proper IRS departments. You will also have to submit all future tax returns on time to qualify for a streamlined installment agreement.
If you are unable to pay the minimum payments for a standard or streamlined installment agreement, a partial payment installment agreement may be a better choice. Required payments for partial payment installment agreements are based on your income and not just on how much you owe. A partial payment installment agreement will take longer to pay off your debt and is more complicated to file with the IRS but may be a good choice if your income is low. Your lawyer can help you fill out a Form 9465 and a Form 433-F and submit them to the IRS. Form 433-F includes information on your monthly income as well as your living expenses and other financial information. Submitting a Form 433-F requires supporting documents to validate your claims including paystubs and bank statements. If your petition for a partial payment installment agreement is approved, the IRS will review your financial situation every two years to determine whether your financial circumstances have changed.
Pearson Butler can help you sort out the complicated and stressful process of negotiating a non-streamlined installment agreement.
How Are Monthly Payments for Installment Agreements Determined?
Monthly payments for installment agreements for debt under $10,000 are determined by dividing your total debt by 30. This number is your monthly payment and will include total interest and penalties that you have accrued. Similar circumstances occur for debts of less than $25,000 and $50,000. For a partial payment installment agreement, payments are based on your monthly income and expenses.
Why Work with an Attorney During an Installment Agreement?
Tax debt can have very serious, life-changing consequences if not handled and resolved properly. Due to the complicated nature of tax law, it is difficult to understand all your options and know what solutions are best for you. Working with an attorney can provide you with an easy and stress-free solution to an otherwise complicated and serious problem. A competent legal professional can prevent drastic measures from being taken against you, such as wage garnishment and liens.
Tax attorneys are recommended over other tax professionals because tax laws are complicated and frequently change. Individuals attempting to negotiate personally with the IRS will face a mountain of complicated paperwork and a maze of bureaucracy to navigate. The attorneys at Pearson Butler can ensure you are making the most of the laws available to help you and ensure that you can arrive at a solution that will allow you to lead a normal life and become debt free.
If you owe more than $10,000, the process of successfully securing an installment agreement can be quite complicated. Every case of tax debt is different. In some circumstances, the IRS may file a tax lien against you, garnish your wages, or take money directly from your bank account, IRAs, or life insurance policy. An attorney can ensure an agreement that has your best interest in mind and relieve you of the hassle and stress of dealing with the complicated paperwork required.
Fighting for Taxpayers for Over 30 Years
The tax attorneys at Pearson Butler have been in the practice of law for over 30 years collectively and have an impressive track record of success in this complex field. The firm gives each client specialized attention and care to reach the best outcome, including a guarantee that your case will not be handed over to an inexperienced paralegal. Tax attorneys with extensive experience will take your case from the start, right through to the most beneficial result possible.
Call Pearson Butler today at (800) 265-2314 or contact the firm online to learn more.
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