Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Dec 18, 2019

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When you’re trying to resolve Internal Revenue Service (IRS) tax debts, it’s important to know all of your options. One of the most common tax debt resolutions is an IRS installment payment agreement. Our tax law expert explains when an IRS installment payment agreement is accepted and how a tax law attorney can make a difference.

IRS payment plans: Does the IRS always accept an installment agreement?

Justin Hein, Managing Attorney for Roni Deutch, A Professional Tax Corporation – a law firm that has been resolving IRS tax debts for American taxpayers for nearly 20 years – says that while IRS Installment payment agreements are generally accepted by the IRS, there are circumstances under which the IRS will not accept this resolution program. For example, an IRS installment payment agreement may not be accepted when a taxpayer has a large amount of “liquefiable” assets – assets that can quickly be turned into cash. However, under normal circumstances, IRS installment payment agreements are generally accepted.

How to make IRS installment payment agreements work for you

Tax lawyers who understand the tax system know how to negotiate with the IRS in order to make IRS installment payment agreements work for you – even when it might seem like the IRS might reject the resolution. Hein confides, “Many of our clients have liquefiable assets, but in certain situations we are able to prove to the IRS that our client needs the assets or the funds. In this situation, we may be able to secure an IRS payment plan for the client.”

Even in circumstances where the IRS may raise a flag or decline a monthly payment plan, there is a way out. The Streamline Installment Agreement does not require the same type of financial analysis that the regular IRS installment payment agreement requires. If you owe $25,000 or less in back taxes and are willing to pay that amount over the course of five years, the IRS is willing to enter into that agreement without any additional analysis.