An installment agreement can be one of the most practical ways to manage a tax debt. Just like the name implies, an installment agreement is an IRS tax payment plan where you make monthly payments that are more affordable and realistic for your financial situation. By paying your tax debt in installments, you can avoid less desirable scenarios such as taking out an unsecured loan, or simply failing to pay.
Sometimes, clients come to Abajian Law with an installment agreement already in place, but the monthly amount is simply too high. Instead of defaulting on an unreasonable installment amount, our attorneys will work diligently to put clients on affordable and cost effective plans that make sense for them.
An installment agreement is also a good option for someone who was unable to reach an offer in compromise with the IRS. In those instances, an IRS installment agreement is a good way to help pay down liabilities, stop levies, and even release or withdraw liens. Whatever you do, you should not simply ignore notices or warnings from the IRS, as they are an extremely aggressive creditor with unique collection powers that private creditors lack. If you owe substantial back taxes, it’s important that you don’t delay in researching options such as an installment agreement in order to avoid further penalties.
While on an installment agreement, the IRS will stop certain collection actions including bank levies, wage garnishments, foreclosure of real property, and seizure of tangible and intangible property including accounts receivable and money owed to a taxpayer from third parties.
Vic Abajian is a Los Angeles tax relief attorney who takes pride in helping his clients achieve freedom from their tax debt efficiently and discreetly. If you owe back taxes to the IRS, a qualified tax debt lawyer such as Mr. Abajian — a former IRS attorney himself — can be your ticket to peace of mind and financial stability.
If you are interested in learning more about whether an installment agreement is right for you, contact Abajian Law today for a free consultation at 818.396.5059
Professional Tax Representative
October 4, 2022