Frequently Asked Questions about IRS 84 Month Installment Agreement
| Question | Answer |
|---|---|
| 1. Can I negotiate an 84-month installment agreement with the IRS? | Absolutely! The IRS allows taxpayers to negotiate an 84-month installment agreement to pay off their tax debt. This can be a great option for those who are unable to pay their taxes in full immediately. |
| 2. What are the eligibility criteria for an 84-month installment agreement? | To be eligible for an 84-month installment agreement, you must owe $50,000 or less in combined individual income tax, penalties, and interest. You must also have filed all required tax returns. |
| 3. How do I apply for an 84-month installment agreement? | To apply for an 84-month installment agreement, you can use the IRS Online Payment Agreement tool or submit Form 9465, Installment Agreement Request, by mail. |
| 4. Can the IRS terminate my 84-month installment agreement? | Yes, the IRS can terminate your 84-month installment agreement if you fail to make your scheduled payments, provide inaccurate information, or fail to pay future taxes. |
| 5. Is there a fee for setting up an 84-month installment agreement? | Yes, there is a fee to set up an 84-month installment agreement. However, low-income taxpayers may qualify for a reduced fee. |
| 6. Can I make changes to an existing 84-month installment agreement? | Yes, you can make changes to an existing 84-month installment agreement by using the IRS Online Payment Agreement tool or by contacting the IRS directly. |
| 7. Will the IRS levy my bank account or garnish my wages while I`m on an 84-month installment agreement? | As long as you are in compliance with your 84-month installment agreement, the IRS will not levy your bank account or garnish your wages. |
| 8. Can I pay off my 84-month installment agreement early? | Absolutely! You can pay off your 84-month installment agreement early without any penalties. This can help you save on interest and become debt-free sooner. |
| 9. Will a tax lien be filed against me if I enter into an 84-month installment agreement? | If you owe $25,000 or less and enter into an 84-month installment agreement, the IRS will not file a federal tax lien against you. However, if you owe more than $25,000, the IRS may still file a tax lien. |
| 10. Can I appeal the denial of an 84-month installment agreement? | Yes, if the IRS denies your request for an 84-month installment agreement, you have the right to appeal the decision within 30 days of the denial. You can request an appeal by sending a written request to the address on the denial letter. |
The Ultimate Guide to IRS 84 Month Installment Agreement
Are you struggling to pay off your tax debt? The IRS offers various payment options to help taxpayers settle their debts. One popular option is the IRS 84 month installment agreement, which allows you to pay off your debt in monthly installments over a period of 84 months. In this article, we`ll take an in-depth look at this installment agreement and how it can benefit you.
What is an IRS 84 Month Installment Agreement?
An IRS 84 month installment agreement, also known as a long-term payment plan, allows you to pay off your tax debt in monthly installments over the course of 84 months. This option is available for individuals who owe $50,000 or less in combined tax, penalties, and interest.
Benefits of an IRS 84 Month Installment Agreement
There are several benefits to choosing an 84 month installment agreement with the IRS:
| Benefits | Description |
|---|---|
| Extended Period for Repayment | With 84 months to pay off your debt, you have more time to manage your finances and make affordable monthly payments. |
| Reduced Financial Burden | By spreading out your payments over a longer period, you can avoid the financial strain of paying off a large sum all at once. |
| Reduced Risk of Collection Activities | Entering into an installment agreement can help you avoid more serious collection actions, such as wage garnishment or bank levies. |
How to Apply for an IRS 84 Month Installment Agreement
To apply for an 84 month installment agreement, you can use the IRS`s Online Payment Agreement tool or submit Form 9465, Installment Agreement Request, along with your tax return or notice from the IRS. You will need to provide information about your financial situation and propose a monthly payment amount that you can afford.
Case Study: John`s Experience with an 84 Month Installment Agreement
John, a self-employed individual, found himself in tax debt due to a downturn in his business. He applied for an 84 month installment agreement with the IRS and was able to pay off his debt gradually while continuing to support his business. This option provided him with the financial breathing room he needed to get back on track.
An IRS 84 month installment agreement can be a lifeline for individuals struggling to pay off their tax debt. With its extended repayment period and reduced financial burden, it offers a practical and manageable way to settle your tax obligations. If you`re facing tax debt, consider exploring this option and take control of your finances.
IRS 84 Month Installment Agreement Contract
This agreement is entered into on this ___ day of ___, 20___, between the Internal Revenue Service (IRS) and the party identified below, hereinafter referred to as “Taxpayer.”
| Article I – Parties | The IRS, a government agency established under 26 U.S. Code § 7801, having its principal place business at [Address], Taxpayer identified [Name] with tax identification number [TIN]. |
|---|---|
| Article II – Background | Whereas, the Taxpayer has an outstanding tax liability in the amount of $____ for the tax year(s) ___; and whereas, the IRS is authorized to enter into installment agreements under 26 U.S. Code § 6159, order facilitate payment tax liabilities. |
| Article III – Installment Terms | The Taxpayer agrees to pay the outstanding tax liability in equal monthly installments over a period of 84 months, with the first payment due on ___ and subsequent payments due on the same day of each month thereafter, until the full amount is paid. The IRS agrees to accept these installment payments and not pursue further collection actions during the term of this agreement, provided the Taxpayer remains in compliance with its terms. |
| Article IV – Modifications | Any modifications or amendments to this agreement must be made in writing and signed by both parties. |
| Article V – Governing Law | This agreement shall be governed by and construed in accordance with the laws of the United States, specifically the Internal Revenue Code and related regulations. |
| Article VI – Entire Agreement | This agreement constitutes the entire understanding between the parties with respect to the subject matter hereof, and supersedes all prior agreements and understandings, whether written or oral. |
IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the date first above written.
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