Don’t let your tax debt ruin your financial future. Let Automated Tax Credits help you set up a manageable payment plan with the IRS and save thousands of dollars in tax accountants fees.
An IRS installment agreement is a flexible payment plan designed to help taxpayers who owe back taxes and can’t afford to pay the full amount upfront. This arrangement allows you to break down your tax debt into manageable monthly payments, providing a structured approach to repayment.
Avoid further penalties and interest
Setting up an installment agreement can prevent your tax debt from growing due to additional penalties and interest.
Gain peace of mind
A structured repayment plan can alleviate stress and provide control over your financial situation.
You generally need to meet the following criteria to be eligible:
Our platform can enable you to request an installment agreement from the IRS if you meet the criteria above. We can guide you through the application process through providing you with the right forms and guidance.
While installment agreements offer relief, it’s important to be aware of the associated costs:
Setup Fee
Typical setup fees range from $31 to $130, depending on the payment method and repayment duration. Low-income taxpayers may qualify for reduced fees.
Interest
An interest is imposed by the IRS on the unpaid balance of your tax debt. The interest rate is determined by quarter and is generally determined as the federal short-term rate plus 3%.
Penalties
You may incur penalties if you don’t make timely payments. Commonly, the failure-to-pay penalty, which accrues at a rate of 0.5% per month, up to a maximum of 25% is imposed. However, the late-payment penalty rate is reduced while an installment agreement is in effect.
Restructuring Fee
If you need to modify an existing agreement or reinstate a defaulted one, the IRS may charge a restructuring fee of $10.
If you have a history of consistent and timely payment of taxes in full, you may be eligible for a Guaranteed Installment Agreement. This agreement offers guaranteed approval and potentially lower interest rates, making it a favorable option for taxpayers with a solid track record.
You may qualify for this installment agreement with the IRS if you owe less than $10,000 in combined individual income tax, penalties, and interest. This simplified process involves a less rigorous application and often results in faster approval. It's a suitable option for taxpayers with relatively more minor tax debts.
If you owe more than $10,000 in combined individual income tax, penalties, and interest, you'll likely need to apply for this installment agreement. This agreement offers more flexibility in terms of payment options and may potentially lead to reduced penalties. It's designed to accommodate taxpayers with larger tax debts.
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Simplify the Process with Automated Tax Credit
Navigating the IRS tax system can be complex, especially when dealing with installment agreements and potential tax credits. Our automated tax credit system is designed to streamline the process by providing:
Maximize Your Tax Savings
By utilizing our automated tax credit system, you can:
Trust Our Expertise
At Automated Tax Credits, we’re committed to providing expert guidance and support throughout the IRS installment agreement process. Our automated tax credit system is just one of the tools we use to help you achieve the best possible outcome.
Generally, no. The IRS typically allows only one active installment agreement per taxpayer at a time. However, there may be rare exceptions, such as in cases involving separate tax debts from different tax years or for different types of taxes (e.g., income tax and employment taxes). If you have multiple tax debts, it’s best to discuss your options with the IRS to determine the most suitable approach.
Missing an IRS installment payment can have consequences. The IRS may:
If you anticipate missing a payment, it’s important to contact the IRS as soon as possible to discuss options for resolving your specific issue and avoiding further penalties.
Yes, you can often modify your installment agreement. If your financial situation changes significantly, you may be able to request a modification to adjust your monthly payments. However, there may be fees associated with making changes to your agreement. It’s important to contact the IRS to discuss your specific circumstances and explore viable options.
Yes, you can view your IRS installment agreement online. You can access your account through the IRS website. This will allow you to view your agreement details, payment history, and any upcoming due dates.
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