If you owe the Internal Revenue Service (IRS) money and cannot pay in full, you may be eligible for a pending installment agreement. This agreement allows you to make monthly payments to the IRS over a set period of time until you have paid off your tax debt.
To qualify for a pending installment agreement, you must owe less than $50,000 in taxes, interest, and penalties, and have filed all required tax returns. You must also provide the IRS with your financial information, including your income, expenses, and assets.
Once your application for a pending installment agreement is approved, the IRS will send you a letter outlining the terms of the agreement. This letter will include the amount of your monthly payment, the due date of each payment, and the total amount you will pay over the course of the agreement.
It is important to note that interest and penalties will continue to accrue on your tax debt while you are making payments through a pending installment agreement. However, these charges will be less than if you do not make any payments at all.
If you miss a payment or are unable to make your monthly payment, you should contact the IRS immediately. The IRS may be willing to work with you to modify your installment agreement to make it more manageable.
If you have a pending installment agreement in place, you will be expected to continue making payments until your tax debt is paid in full. Once your debt is paid off, the IRS will release any liens or levies on your property.
In summary, a pending installment agreement is a payment plan that allows you to pay off your tax debt over time. To qualify, you must owe less than $50,000 and have filed all required tax returns. Interest and penalties will continue to accrue while you are making payments, but the charges will be less than if you do not make any payments at all. If you miss a payment or are unable to make your monthly payment, you should contact the IRS immediately.