The IRS offers several types of installment agreements to help taxpayers who cannot pay their tax liabilities in full but who do not qualify to pay less than what they owe.

Here is an overview of a few of the different types of installment agreements available for individuals and certain small businesses:

Streamlined (Direct Debit) Installment Agreement

You must owe a combined $25,000 or less.

Streamlined (Direct Debit) Installment Agreement 2

You owe a combined balance between $25,000 and $50,000.

Routine Installment Agreements

The IRS will consider this installment agreement for any amount owed.

Seek Professional Help!

It is highly advisable for taxpayers to have one of the professionals at Sunshine Tax Relief set up an installment agreement due to the complexities involved. Setting up an installment agreement sometimes requires detailed financial statements, such as Forms 433-A, 433-B, or 433-F, which must accurately reflect your financial situation. These forms are critical for determining the appropriate payment amount and ensuring compliance with IRS requirements.

Further, the risk of default is significant, as failing to comply with the terms of the agreement can result in the IRS taking enforcement actions, such as levying assets or filing a Notice of Federal Tax Lien. Sunshine Tax Relief can navigate these complexities, ensure accurate and timely submissions, and provide ongoing support to mitigate the risk of default and subsequent collection actions.

State Balances Due

For balances owed to state taxing authorities, each respective state has specific rules and statutes. Since some states can be even more aggressive than the IRS when it comes to collection actions, it is recommended that taxpayers use one of the pros at Sunshine Tax Relief to navigate this system.