If you are facing what seems like an overwhelming amount of tax debt, a partial payment installment agreement may be just what you need to help you in debt negotiation with the IRS. A partial payment installment agreement can help you get out of tax debt quicker than you might expect. And, you might not have to pay all of your debt.
With this type of agreement, you can pay some of your debt to the IRS on an agreed-upon payment plan that takes into account your income, expenses, and assets. Once you fulfill the obligations of your agreement plan, the remainder of your tax debt is absolved. Clearly, this plan is a popular choice for those facing debt negotiations.
To get started negotiating a partial payment installment plan, consult with a CPA or other form of tax professional. This process is difficult to do alone, and you might have more success with a trained professional backing you as you go through debt negotiation with the IRS.
Once you know exactly how much you owe in back taxes and have checked for any kind of errors, fill out the IRS’s Installment Agreement Form (Form F9465). On this form, you make an offer of what you think you can pay the IRS.
Next, fill out Form 433-A.
These forms are submitted along with a written request to start a partial payment installment agreement.
A partial payment installment agreement can be a great way to eliminate your tax debt. Certainly a better option than facing bankruptcy, this plan allows taxpayers to maintain a credit score and allows them off the hook for their total debt.