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How Long Will It Take for an IRS Agreement? | Tax Relief Program | Florida

Updated: Jan 30

FLAT FEE TAX RELIEF Coast to Coast Tax Relief Programs

The tax professionals at Flat Fee Tax Relief provide assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for a tax relief program, call our team for a free consultation.

Receiving an IRS notice or interacting with the IRS can be a stressful ordeal, especially if you owe a tax liability. When attempting to set up an installment agreement with the IRS, it can take anywhere from a few hours to a few months depending on the type of payment plan you’re attempting to qualify for. 

Always keep in mind that the IRS always wants to accomplish to goals. One is to collect money. The other is to close a file. An installment agreement accomplishes these goals. However, an Offer in Compromise (#taxsettlement) also does the same. Before you agree to anything with the IRS, speak to an experienced tax professional first.

The IRS allows taxpayers to set up payment plans, such as extensions to pay and “streamlined” installment agreements. For more complicated agreements, the IRS will require that you provide financial information in order to verify whether or not you qualify.

Listed below are your options when attempting to get on a payment agreement with the IRS: 1. Request an extension. If you need more time to pay off your tax liability, the IRS allows taxpayers to request an extension for up to 120 days. The IRS will grant this extension for any tax balance amount as long as taxpayers pay their balance owed before the deadline. If the bill is not reconciled before the due date, the IRS will place the taxpayer in question back into collections. 

2. Set up a simple payment plan. Installment agreements with the IRS are typically called streamline installment agreements and can be set up by a taxpayer that has a tax bill of up to $50,000. Taxpayers must pay their balance back within six years and generally the IRS does not file a tax lien if you use a debit card for payment.

If you were previously set up on an payment plan and defaulted, you may need to contact the IRS to set up another one and provide your current financial information.

Taxpayers that owe between $25,000 and $50,000 will be required to pay by direct debit or a payroll deduction in order to avoid a tax lien being filed against them. The typical time frame to set up this agreement is between 4-6 weeks.

3. Request Currently not Collectible status. For those who have a tax bill you’re financially strapped and unable to pay back the IRS within an 84 month period, the IRS does provide assistance. A taxpayer can request a Currently not Collectable status if they are in financial hardship and don’t have the ability to pay their tax liability. 

A taxpayer must submit their financials and prove that they are in a hardship in order to qualify for this agreement. The IRS typically files a tax lien for those who owe more than $10,000.

The agreement can be requested over the phone however, it can take months to complete. This is because the IRS requires a taxpayer’s most current financials as well as additional detailed information. If this agreement is requested via mail, it will typically take the IRS 1-2 months to consider your request and could even ask that a taxpayer forward more information if they deem the documentation they have on file is insufficient.

4. Offer in Compromise

(#IRStaxsettlement) If you are unable to pay your tax bill after paying your everyday expenses, you may be able to settle your entire tax debt. You would need to owe $10,000 or more to settle. Not everyone is eligible. Your last six (6) years of tax returns must be filed. The IRS approves approximately 42% of the 80,000 Offer in Compromise submissions. Most of those rejections are to "Do It Yourselfers" (DIY) taxpayers who are either think they are smarter than than the IRS, or too cheap to do it right. It really is cost effective to have an experienced tax professional with a proven track record do your Offer in Compromise. A successful tax settlement will dramatically reduce you tax bill.

For more than a decade, from coast to coast, the tax pros at Flat Fee Tax Relief have been providing valuable tax debt help at a very affordable fee. Our Tax Attorneys have a 96% Offer in Compromise success rate.

We are strategically located in Clearwater, Florida, and San Diego, California. This allows our tax professionals to be available from 8 A.M. Eastern to 6 P.M. Pacific time. This comes in mighty handy when an IRS levy needs to be stopped and released in one day.





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