If you are not able to pay your complete due and you owe less than $15,000, you are eligible for an installment contract. An installment contract will allow you to pay in a little bit each month toward your whole government tax invoice. Below we will list everything you need to apply for an installment contract, such as which forms to deliver to the IRS.
Steps to take to get ready An IRS installment agreement form
After you have completed these two forms, you should make a published statement trying to explain to the IRS why you owe the quantity of financial obligations you do and why you cannot pay the offer in compromise lawyer presently.
Copies of Your Tax Returns
Next you should prepare copies of your newest registered tax come back, Type W-2 and Type 1099. Other tax profits may be asked for by the IRS, it would be a wise idea to have them useful in case this happens.
Proof of Tax Filings
Put together some proof that you are present with all of your tax filings as well as given by the IRS for approximated tax payments. The more proof, the better. If you can display the IRS definitely you are present, it is more power to you.
Pay Statement & Proof of Income
Gather all your old pay stubs and earnings information to demonstrate to the IRS why you are currently not able to pay your complete responsibility but are able for making payments eventually. Again, the more proof you can set up to demonstrate the IRS you are not able to pay your whole responsibility, the better.
Bank Account Statements
The IRS also wants to see your savings account claims for at least the past three several weeks. You will need to set up all your down payment items, terminated assessments, and financial institution claims for the past three several weeks for evaluation for fresh start program by the IRS. It is possible they will ask for additional several weeks; keep these records useful just in case.
All the details you can collect outlining residence that you own is going to be asked for by the IRS. For example, when you obtain the exact residence, how much you paid for the exact residence, the marketplace value of the exact residence, and things of these characteristics. If you have had a latest evaluation of your home, you can add a copy.
The fresh start program of IRS is going to want to see proof of possession of all your automobiles. For example displaying copies of headings, rental contract, purchase contract, and claims from the lending company. You should also display copies of whatever you still owe on the automobile if you currently have credit. Last you will need to demonstrate the currently industry price of the automobile if possible.
Life Insurance policy Policies
Life plans are going to be confirmed by the IRS. To display confirmation, consist of copies of records that demonstrate the type of plan, schedules, quantities, present cash give up value, plan loans and so on.
Shares of Corporations
If you own stocks in a corporation(s), the IRS is going to want to see proof. Assemble all the records that demonstrate what you own and how much you own of each company.
Documents of Liability
If you have excellent obligations, you need for making copies to confirm the money you owe. These can add a mortgage, car financing, records due, notices due and other types of obligations excellent.
All your cost of residing need to be presented to the IRS to confirm you are not able to pay your complete due balance. These normally consist of payments, food, outfits and payments displaying costs that are needed to live.
All of these records should be copies sent to offer in compromise lawyer in a well-organized folder. You want to demonstrate the IRS that you are serious and well organized in your case for an installment contract.