Installment Agreements: How to Set Up a Payment Plan and Stay Compliant with the IRS
When you owe taxes, you can’t pay in full, the worst thing you can do is ignore the problem. Fortunately, the IRS offers installment agreements a structured way to resolve your debt without overwhelming your finances. At Shalini Kodial CPA, we help clients navigate this process with clarity and confidence.
What Is an Installment Agreement?
An installment agreement is a monthly payment plan arranged with the IRS to gradually pay off your tax debt. It allows you to stay compliant and avoid further penalties, interest, or aggressive collections like liens and levies. These plans are especially helpful for individuals or businesses facing temporary financial difficulty.
Client Success Story: Sarah’s Path to Peace of Mind
Sarah, a self-employed freelance designer, fell behind on her estimated quarterly taxes during a tough year. When she came to us, she owed over $62,000 to the IRS. Understandably anxious, she wasn’t sure how to approach the situation. We reviewed her financials, determined the best repayment approach, and submitted a formal installment agreement on her behalf. Today, she is on a manageable plan, making monthly payments with peace of mind, and no longer fearing IRS letters.
How We Help with Installment Agreements
- Evaluate your total tax debt and financial situation
- Determine eligibility for streamlined or partial payment agreements
- Communicate directly with the IRS on your behalf
- Submit all required documentation accurately and on time
- Monitor ongoing compliance to avoid plan default
Don’t Wait to Take Action
If you’re feeling overwhelmed by unpaid taxes, you don’t have to face it alone. An installment agreement may be the solution you need to move forward confidently.
Contact us today to schedule a confidential consultation. Let’s find the right path together and create a plan that works for you.
