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Irs Levy Installment Agreement

If you owe taxes to the Internal Revenue Service (IRS) and are unable to pay the full amount, you may be eligible for an IRS levy installment agreement. This is a payment plan that allows you to pay your tax debt over time, rather than in one lump sum. In this article, we`ll discuss what an IRS levy installment agreement is, who is eligible for it, how to set it up, and what to expect during the process.

What is an IRS Levy Installment Agreement?

An IRS levy installment agreement is a payment plan that allows individuals who owe taxes to the IRS to pay their debt over time. This agreement is also known as an IRS payment plan. The IRS will generally agree to such a payment plan if the individual is unable to pay the full amount of taxes owed at one time.

Who is Eligible for an IRS Levy Installment Agreement?

Individuals who owe taxes to the IRS and are unable to pay the full amount at once may be eligible for an IRS levy installment agreement. To qualify, you must be current with all tax filings and not have any other outstanding tax debts. If you owe more than $50,000, you may be required to provide additional financial information to the IRS.

How to Set Up an IRS Levy Installment Agreement

To set up an IRS levy installment agreement, you must first determine how much you can afford to pay each month. You can use the IRS Online Payment Agreement Tool to calculate your monthly payments. Once you have determined how much you can afford to pay, you can apply for an installment agreement using the IRS Online Payment Agreement Tool, or by submitting Form 9465, Installment Agreement Request, by mail.

What to Expect during the Process

After you have applied for an IRS levy installment agreement, the IRS will review your application and either accept or deny it. If your application is accepted, you will receive a notice from the IRS detailing the terms of the payment plan. You will be required to make monthly payments on time and in the amount agreed upon in the payment plan.

If you miss a payment, the IRS may take enforcement action against you. This can include wage garnishment, bank account levies, and property seizures. It`s important to make all payments on time to avoid any enforcement actions.

Conclusion:

An IRS levy installment agreement is a payment plan that allows individuals who owe taxes to the IRS to pay their debt over time. To qualify, you must be current with all tax filings and not have any other outstanding tax debts. To set up an IRS levy installment agreement, determine how much you can afford to pay each month and then apply using the IRS Online Payment Agreement Tool or by submitting Form 9465 by mail. After your application is accepted, make all payments on time to avoid any enforcement actions.