The IRS has the ability to grant the taxpayer the option to pay its tax liability over time if it will facilitate collection of their debt. If you are unable to pay the full amount of your debt then an installment agreement may be right for you.
The IRS is driven by the ability to collect outstanding tax debt as quickly as possible. When the IRS determines that you do not have assets that can be liquidated to cover your tax liability they will begin to look for other options. One of these options is to set up a payment plan that you can afford to pay on a monthly basis. To qualify, you must have some form of disposable income that can be applied to your tax liability monthly. This income is any income left over from all your monthly expenditures.
If the IRS grants you an installment agreement, you should remember to write down the information regarding the IRS employee that accepts your application. This can come in handy if you don’t begin to receive monthly ins