Saturday, April 11, 2009

INSTALLMENT AGREEMENTS WITH THE IRS

Help! I owe money to the IRS and can't pay. I think I heard you talk about an extension agreement with the IRS. Help!

Teddy

Teddy, don't you just hate this time of year. You can get an installment agreement with the IRS. The good news is that it is automatic if you owe under $25,000. There are two ways to request the agreement.

Of course the government is not going to let you get by without getting a little more money out of you.

The IRS charges a user fee to set up your installment agreement. The user fee for new installment agreements is $105 and $52 for agreements where payments are deducted directly from your bank account, along with interest on the unpaid balance.

If your income is below established levels, based on the Department of Health and Human Services poverty guidelines, you can apply for a reduced user fee of $43.

Larry Kopsa CPA

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