In most cases, you can get into an Installment Agreement. However, it is important to understand whether an Installment Agreement is the right solution for you.
There are two options: Full payment Installment Agreement and Partial payment installment agreement. Each one has pros and cons.
Full Payment Installment Agreement
This option gives you time to pay your debt, while avoiding levies and garnishments. The IRS may file a federal tax lien, but once you pay in full you can request a lien withdrawal. If the amount is higher than $25,000 your full financials will be necessary, and there is a limited time to repay.
It is always important to understand whether you can afford the Installment Agreement and avoid defaulting.
Partial Payment Installment Agreement
A Partial Payment Installment agreement allows you to pay the IRS each month an amount you can afford. Therefore, the amount will not pay the debt in full in the remaining collection period, and once the collection period is over, your debt disappears.
It is important to know, however, that the IRS will revisit your case. If the IRS has a reason to believe that you can afford higher payments, they will try to make you pay. Also, contrary to the Full Payment Installment Agreement, the IRS will not withdraw a lien if the collection period expires.
We can help, don’t face the IRS alone.
Contact the Law Office of Anthony Verni. We will help you understand whether an Installment Agreement will solve your problem, and work with you to protect your assets.