If you are a taxpayer who is struggling to pay your taxes owed to the Internal Revenue Service (IRS), then an intermediate installment agreement may be the perfect solution for you. This type of arrangement allows taxpayers to make monthly payments to the IRS until their tax debt is paid in full.

An intermediate installment agreement works by spreading out the payments over a period of time, usually between three and six years. This allows taxpayers to make smaller, more manageable payments that fit within their budget.

To qualify for an intermediate installment agreement, taxpayers must have a tax debt between $10,000 and $50,000, and their income and expenses must be thoroughly reviewed. The IRS will carefully evaluate the taxpayer`s financial situation to determine the monthly payment amount.

One of the biggest advantages of an intermediate installment agreement is that it gives taxpayers the ability to pay off their tax debt without facing additional penalties and interest. The IRS may still charge interest on the remaining balance, but the penalties for not paying the full amount owed will be waived.

It is important to note that taxpayers must continue to file their tax returns on time and make all payments on time as well. Failure to do so may result in the IRS cancelling the installment agreement and taking legal action to collect the debt.

In addition, an intermediate installment agreement will not prevent the IRS from placing a tax lien on the taxpayer`s property if the debt goes unpaid. However, if the taxpayer adheres to the agreement and makes all payments on time, the tax lien may be released upon full payment of the tax debt.

Overall, an intermediate installment agreement can be a valuable tool for taxpayers who are unable to pay their taxes in full. It allows them to make smaller, more manageable payments and avoid additional penalties and interest. If you believe an intermediate installment agreement may be right for you, it is best to consult with a tax professional to determine your eligibility and navigate the process.