Installment Agreements

An Installment Agreement with the IRS allows taxpayers that cannot afford to fully pay their back tax liability, and those who do not qualify for an Offer in Compromise, an option to pay their back taxes through manageable monthly payments.  A taxpayer must be compliant with all past tax filings before establishing the agreement.  Once an Installment Agreement has been established, the IRS suspends their collection efforts and refrains from issuing wage garnishments, bank levies, sending notices and making harassing phone calls.  However, you should be aware that while you are making payments on your tax debt through an Installment Agreement, the IRS continues to charge interest and penalties on the unpaid portion of that debt.