Determining Your IRS Installment Agreement Amount When the Future Is Uncertain

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Determining the right amount for IRS installments is never easy, but this takes on a whole new level of confusion when you lack confidence in your financial future. If, for example, you anticipate layoffs at your place of employment, you won’t be in a position to take on an ambitious payment plan.

Still, it’s important to make progress on your tax debt and keep the IRS out of your hair. These suggestions can help you balance competing demands during uncertain times:

Weighing the Pros And Cons

As you choose a path to repayment, you’ll likely encounter two main strategies:

  • Keep your monthly payments low so you can handle them in the event of job loss.
  • Pay off your tax debt as quickly as possible so you don’t need to worry about IRS obligations if your financial situation changes.

Both approaches have their merits, but both can be risky when you’re not sure what the future holds. To make the right choice, consider not only the extent of your current IRS obligations, but also, other sources of debt.

Don’t Forget About Options for Adjusting Your Agreement

If you’re interested in pursuing an aggressive payment plan but worry about the future, keep in mind that several options exist for adjusting your tax debt obligations. The IRS offers opportunities to modify your payment amount within reasonable limits. Depending on your tax situation, you might be able to reduce your payments in a matter of minutes by using the IRS online installment agreement tool.

If you’re really struggling, you can complete IRS Form 433-F — the Collection Information Statement. This process isn’t easy, but the potential for modification can provide valuable peace of mind during these trying times.

At the Highland Tax Group, we understand the many ways in which financial uncertainty can play into IRS drama. We’re here to lend a helping hand. Reach out today to learn more about our compassionate tax services.