An IRS installment agreement is a payment plan negotiated with the IRS to pay any current or back tax balances for a business that cannot afford to pay the full amount its tax debt at one time. The amount of the payment and the length of the repayment period are usually based on the current and projected financial condition of the business together with balance of the taxes owed. The IRS currently offers four different types of installment agreements, each with specific qualification criteria.
The following are the four installment agreement options currently offered by the IRS:
- To qualify for a guaranteed IRS installment agreement, a business must have a tax balance due of $10,000 or less and be able to meet the terms of a repayment period, not to exceed 36 months. The business must have been tax compliant for the previous five years and must not have entered into any other installment agreement during that time period.
- To qualify for a guaranteed IRS installment agreement, a business must have a tax balance e due of $50,000 or less and be able to meet the terms of a repayment period, not to exceed 72 months. The business must have been tax compliant for the previous five years and must not have entered into any other installment agreement during that time period.
- A partial payment IRS installment agreement allows a business to settle a tax liability for less than the full amount owed. Because the IRS is agreeing to accept partial payment of a tax debt with this type of installment agreement, a qualifying business must submit documentation that they are unable to meet the minimum payments requirements of either the guaranteed installment agreement or streamlined installment agreement. The terms of this installment agreement are normally based on the income and expenses of the business in question together with the balance of taxes owed.
- A business may qualify for a non-streamlined IRS installment agreement if it has a tax balance due in excess of $25,000 and requires a repayment period of greater than six years.
The tax professionals at Winter & Winter Insurance Services, Inc. have a thorough understanding of the terms and qualification criteria for the various types of IRS installment agreements. They are experienced at evaluating the financial condition of a business and recommending an IRS installment agreement option if they determine that it is the best tax relief solution available.
To find out more about our business tax relief services, call us today at (866) 254-2996to speak with a licensed tax professional or fill out our secure online request form to receive a free, no obligation consultation.