IRS Installment Agreements

Are you facing an overwhelming bill for back taxes? IRS Installment Agreements may be your best option.

What are IRS Installment Agreements ?

IRS Installment AgreementsIRS Installment Agreements allow a taxpayer to pay delinquent tax liabilities over time. For many taxpayers who have back taxes or an insurmountable tax liability, paying what is owed all at once simply isn’t possible. Establishing an IRS Installment Agreement can make paying a tax liability much more manageable.

IRS Collection Activities Cease Once an Installment Plan is Accepted

As soon as an IRS Installment Agreement is accepted, the IRS will cease from collection activities against the taxpayer. As long as the taxpayer remains current with all payment obligations and any future tax filings, the IRS will also cease the levy of bank accounts and wage garnishments.

Important Considerations Regarding IRS Installment Agreements

If you are contemplating entering into an IRS Installment Agreement, there are some facts that you need to consider:

  • There is a $105 IRS set up fee to for an IRS Installment Agreement.
  • Interest and penalties continue to accrue on the outstanding balance of the tax liability until the liability is paid in full. If the taxpayer has some sources to borrow funds, that might make for a significant savings. A second mortgage might be a simple alternative and any second mortgage interest will be tax deductible. Interest and penalties charged by the IRS are not tax deductible.
  • The IRS may file a federal tax lien to pressure the taxpayer’s compliance with the installment agreement. However, the IRS cannot execute upon the tax lien and levy upon any personal or real property you own so long as the IRS Installment Agreement is being reviewed, is actually in effect, or for 30-days after denial of the Installment Agreement. Moreover, if a lien was filed, the IRS would not proceed with levy if you were denied an agreement and then begun the IRS appeal process.

Tax professionals can almost always negotiate better arrangements

An experienced Tax Resolution Lawyer can help negotiate an Installment Agreement with more workable payments than most taxpayers will be offered without professional representation. Most taxpayers applying on their own will find that the IRS will “demand” that you accept its calculated payment plan – if they agree to installments at all. This is because the IRS desires to collect the full tax debt as rapidly as possible. Generally speaking, the IRS’s calculations for a payment plan are often unrealistic, leaving the taxpayer with little or no disposable income should the taxpayer accept their often too-aggressive plan. Our Tax Resolution Lawyers can likely negotiate a far better arrangement so you can keep your family going while paying off your tax debt.

If the IRS is demanding immediate full payment or if the IRS has proposed an installment payment plan that is substantially higher than you can reasonably afford to pay, call the tax professionals and tax attorneys at Vincent W. Davis & Associates for help. An experienced tax attorney will be more likely to negotiate the lowest possible monthly payment with the IRS. Why? The IRS takes those with professional representation more seriously. We can also help you negotiate more realistic payment plans with state tax authorities for our clients’ state tax liabilities.

Requirements to Submit an IRS Installment Agreement

The IRS requires that a taxpayer file all delinquent returns before or in concert with the submission of an application for a installment payment plan. Furthermore, the taxpayer is required to remain current on future filing obligations. Don’t stress out if you have outstanding tax returns. We can quickly and affordably prepare and file all back tax returns necessary to bring you into compliance and enable you to qualify to submit an IRS installment agreement proposal or petition for other tax settlement alternatives.

Out of work, Illness? We can petition the IRS to classify you as “Currently Not Collectible”

If your circumstances are such that you are simply not able to take advantage of an IRS Installment Agreement where you would agree to make monthly payments, or have sufficient resources to make an Offer In Compromise where a significant percentage of the tax debt is often forgiven, our tax professionals and attorneys could assist you in requesting that the IRS place your account in a “currently not collectible” status. If your circumstance are conveyed to the IRS whereby they are agreeable to classify the taxpayer as “currently not collectible,” the IRS will discontinue enforcement action and release any levies already in place. For more information concerning state or IRS installment agreements, Offers In Compromise, or Currently Not Collectible, please call us.

Get some help —Make that call!

The Tax Resolution Lawyers at Vincent W. Davis & Associates, provide a no-obligation, confidential consultation and have appointments available for evenings and weekends. Moreover, we accept all major credit cards and can make other payment arrangements so that we can help you get your tax problems straightened out without adding additional layers of financial burden on you and your family. We have seven convenient offices throughout Southern California, including Los Angeles County, Orange County, Riverside County and San Bernardino County. To schedule a confidential free consultation with one of our Tax Resolution Lawyers, call 626-446-6442.


Arcadia Office
150 N. Santa Anita Ave,
Suite 200
Arcadia, CA 91006
Phone: (626) 446-6442
Fax: (626)-446-6454


Beverly Hills Office
9465 Wilshire Blvd.
Suite 300
Beverly Hills, CA 90212
Phone: (310)-880-5733


La Mirada Office
Cerritos Towne Center
17777 Center Court Drive ,
Suite 600
Cerritos, California, 90703
Phone: 888-888-6542


Los Angeles Office
Gas Company Tower
555 West Fifth Street,
31st Floor
Los Angeles, California, 90013
Phone: (213)-400-4132


Long Beach Office
Landmark Square
111 West Ocean Blvd.,
Suite 400
Long beach, California, 90802


Irvine Office
Oracle Tower
17901 Von Karman Avenue,
Suite 600
Irvine, California, 92614
Phone: (949)-203-3971
Fax: (949)-203-3972


Ontario Office
Lakeshore Center
3281 E. Guasti Road,
7th Floor
City of Ontario, California, 91761
Phone:(909)-996-5644


Riverside Office
Turner Riverwalk
11801 Pierce Street,
Suite 200
Riverside, California, 92505
Phone: (909)-996-5644


San Diego
Emerald Plaza
402 West Broadway,
Suite #400
San Diego, California, 92101
Phone: (619)-885-2070


Aliso Viejo
Ladera Corporate Terrace
999 Corporate Drive,
Suite 100
Ladera Ranch, California, 92694
Phone: (714) 721-3822