What Are Different IRS Installment Agreements or IRS Payment Plans?
Different Types of IRS Installment Agreements
Not every IRS Installment Agreement (IA) is the same. If you are interested in a IRS payment plan you should know which one is going to give you the best chance of long term success. The more you know about the different types of IAs the easier it becomes to select the right type of Installment Agreement with the IRS.
There are many types of IRS installment agreements. Chances are that you will only be able to take advantage of one of them. The most common types are as follows: Guaranteed, Streamlined, Verified Financial, and IAs over $100k.
A Guaranteed IRS installment agreement is used if you are caught up with all past returns and owe less than $10k. In this case the IRS guarantees that they will allow you to use a payment plan to pay your debt. As long as you can pay the full amount within three years, you can setup this type of plan in no time at all.
If you owe between $10,001 and $24,999 you will want to request a Streamlined IA. All of your returns must be filed with this type of plan as well. The IRS will negotiate with you by requiring minimal financial disclosure if any at all.
Those who owe between $25,000 and $100,000 do not get off as easily. In this case, you have to provide full financial disclosure which often times includes pay stubs, bank statements, canceled checks, and proof of expenses. This requires that complete Form 433a for a Collection Information Statement which will detail all of your assets, expenses, and income to the IRS.
The IRS has a "large dollar" unit that is responsible for taxpayers who owe more than $100k. This is a serious amount of debt, so the IRS makes sure that those in this situation are given special attention. If you are in this position you can still receive an IA, but you will probably want to hire a professional to help.
The IRS is hard on people who owe this much in back taxes, so getting the right help is important. If you have tax debt and are interested in an IRS installment agreement you will most likely fit into one of these Installment Agreements above.
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