Tuesday, April 15, 2008

Installment Agreement- The IRS Way

Installment Agreement- Taxpayers wishing to pay off a tax debt through an Installment Agreement and owe:

*$25,000 or less in combined tax, than penalties and interest can apply for an installment agreement using a simplified procedure.

*More than $25,000 in combined tax, penalties, and interest may still qualify for an installment agreement, but must complete a more complex application including the submission of financial statements. The IRS user fee for settling up an installment agreement is $52 for direct debit agreement and $105 for non-direct debit agreements. Certain low-dash income taxpayers will qualify for a reduced fee of $43. These fees must be paid with the first installment. You will also be charged interest and may be charged a late payment penalty on any tax not paid by its due date, even if your interest to pay in installments is granted. Interest and any applicable penalties will be charged until the balance is paid in full.

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