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Tax Law > Installment Payment Agreement

The Internal Revenue Service (“IRS”) offers an Installment Payment Plan to taxpayers who have a tax liability, but are unable to pay the entire amount in one lump sum. To qualify for an Installment payment plan taxpayers must have:
  • Filed all required tax returns
  • Less than $50,000 (individuals; or less than $25,000 (businesses)
The main benefit of the Installment Payment Plan is abatement of penalties and interest throughout the course of the plan. Currently, the IRS charges 3% annual interest on unpaid taxes. Additionally, the IRS charges 0.5% penalty monthly for unpaid taxes. This means that if you owe $50,000 in taxes you will be charged a penalty of $250 every month in addition to the interest accruing while the tax remains unpaid.

 
Taxpayers who qualify for the Installment Payment Plan should contact legal representation as soon as possible to begin making payments. Contact one of our attorneys today to discuss your options.