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Video instructions and help with filling out and completing Form 2220 Installments

Instructions and Help about Form 2220 Installments

Music: Can I make installment payments on my tax bill? That's the question we're gonna answer here today. My name is Darren Tee Measures, they call me the IRS solution attorney. And the answer, like so many of these, is it really depends. If you owe $8,000, most certainly you can enter into what's called an installment agreement with the IRS. Basically, the rule is here: we're gonna divide the $8,000 by 72, and whatever that number equals plus a little bit for penalties and interest, you know, ten, fifteen, twenty-five bucks, then that's going to be the amount of your installment payment. Now, if you owe more than $50,000, it gets more complicated. Because if you owe more than $50,000, you're not entitled to what's called a streamlined installment agreement, and you have to do what I call a complex installment agreement. It's complex because the IRS is going to determine what their opinion of your reasonable or your monthly disposable income is, and then they're gonna ask, or demand, that you pay that on a monthly basis. So, your monthly disposable income is the difference between your gross income minus your business expenses if that applies, and then minus your allowable expenses, and that equals the amount of your monthly disposable income. And there's really no way, without looking at your particular financial situation, to determine what your monthly disposable income is. Because there are so many facts and circumstances that vary. Now, if you make $300,000 and you owe $75,000, then the IRS is going to demand that you pay your monthly disposable income. Well, how much is your monthly disposable income in that situation? It depends. It depends on where you live, it spends on where you have, how you spend your money. You know, if you live...