The IRS which stands for internal state revenue service allows taxpayers to pay their debts little by little through an installment agreement. Because taxpayers pay their debts through an installment agreement, interest may apply. The interest rate is usually between 8 to 10 percentages in a year. So if a taxpayer has the money to pay his debts, he is advised to pay them immediately instead of the using an installment agreement because of the interest applied to it. Some of the ways taxpayers can make their installment payments include payroll deduction, direct debit, check or money order, electronic federal tax payment system, online payment agreement and by using credit cards. Having an IRS installment agreement doesn’t just settle the situation because a taxpayer can have his your installment agreement revoked if he misses a payment, if the taxpayer was paying under a partial payment installment agreement, and after a review there is a change in the IRS financial position, the IRS can also revoke the installment agreement if the taxpayer lied by providing inaccurate information in his form and the IRS can also revoke the agreement if he does not pays his taxes after filing for the instalment agreement. The types of installment agreement offered by the IRS are discussed below

1. GUARANTEED INSTALLMENT AGREEMENT

The IRS will only agree for a taxpayer to use this installment agreement if he owes about $10,000 or less, but the taxpayer must also meet these criteria:

1. All the taxpayer returns have been filed
2. If the taxpayer has had no installment agreement in the past five years.

• If the taxpayer agrees to pay his installment on time now and in the future

1. If the taxpayer agrees to pay his debt within the next 36 months
2. If the taxpayer has not paid late in the past five years. You should know that this does not include extensions of time to file. It means when you miss a deadline without taking action.

The most important benefit of a guaranteed installment agreement is the fact that the IRS will not file a federal tax lien against you for your outstanding taxes. The IRS reports tax liens to the credit bureaus, and that will affect your credit score in a very negative way. If the property associated with a lien is to be sold, the IRS gets paid first. The IRS gets the amount you are to pay under this method by dividing your tax debts including penalties and interest by 36 months. But if you want to pay the debt off before 36 months, you can do that.

2. STREAMLINED INSTALLMENT AGREEMENTS

The streamlined agreement might fit you if don’t qualify for the guaranteed agreement. This agreement can be applied for if your debt is less than $50000 or equal to it. But the taxpayer will have to pay off the debt in less than 72 months or less. The streamlined agreement is part of the IRS Fresh Start Program that was brought into existence to help taxpayers who owe money. Before the fresh start, the IRS only ascent to streamlined agreements if the debts are $25000 or less & the taxpayer has agreed to pay the debt within sixty months. Like other agreement, the IRS will want the taxpayer to file all his tax returns, but if they are late, the taxpayer will have to promise to pay on time and pay his taxes on time from that day on. Just like the guaranteed agreement, the main goal of the streamlined agreement is that the IRS will not go ahead to file a federal lien to make to you pay or will they ask you to fill the financial statement form to make the IRS know your income and expenses.

3. PARTIAL PAYMENT INSTALLMENT AGREEMENT

If the guaranteed payments or the streamlined payments does not fit your budget, you can get a better offer from the partial payment installment agreement. This is a type of payment where you pay a monthly installment base on what you can afford after considering all your monthly bills. The installment plan is different from the guaranteed and streamlined installment plan because it covers a longer repayment period and the IRS can file a federal lien to help them collect their debt in full. The taxpayer will also have to fill the financial statement form to help the IRS know your average income and living expenses for the past three months. You will be asked to provide bank statements and substantiate any equity if you have in owned assets.

4. NON STREAMLINED INSTALLMENT AGREEMENT

If your debt is over $50000, you will have to negotiate your installment agreement plan with IRS. You might need the assistance of a tax professional. If you are based in Atlanta, you can get the help of an Atlanta tax lawyer to help you with the negotiation. The non-streamlined plan can be applied for if you want to repay the debt for longer than five years or you don’t meet any of the other requirement for other plans. This type of installment plan is negotiated with an IRS agent directly and then passed to the IRS manager for review and approval. The IRS will also file a federal tax lien and ask for a financial statement form.

HOW TO REMOVE A TAX LIEN

Tax liens are filed against taxpayers who cannot pay their tax obligations. The IRS will obviously remove a tax lien if it filed in error if the outstanding debt is paid, if a better offer and successful offer is offered in compromise, or if the lien cannot be enforced anymore. Lien has a ten-year statute and can expire after that period. The two ways of removing a federal tax lien are either by withdrawal or by release. A taxpayer can do this more efficiently by getting a tax attorney. If the taxpayer is in Atlanta, it is advisable for him to get the help of Atlanta tax lawyer