Video instructions and help with filling out and completing How Form 2220 Installment

Instructions and Help about How Form 2220 Installment

Fire s installment agreements answers to your questions hi my name is Darren mesh and I'm an attorney whose practices that is located in Tampa Florida and we represent clients nationally and internationally with their problems with the IRS I'm here today to answer some questions common questions that people have about IRS installment agreements what are they how do you get one are there different types do I have to full pay how much I owe to the IRS how long can I get one for and those types of questions well there's basically three types of installment agreements in my opinion there's something called a streamlined installment agreement which is well I'll explain it in a minute there's one called a complex installment agreement and lastly there's something called a partial pay installment agreement first the streamlined streamlined means is called what it is because basically if you owe under twenty-five thousand dollars and you and there's some bunch of other you know conditions where they can technically deny you the right to streamlined installment agreement I don't have time to go into those right now but basically if you owe under twenty five thousand dollars and you can afford to pay that liability over sixty months over a 60 month time frame then you can get what what's called a streamline installment agreement so let me give you some numbers if you have twenty five thousand dollars and you want to pay that out over sixty months if you go ahead and do the math it's gonna come out to just about let somewhere in the four hundred and $50 a month range something like that I don't have the math in front of me it's something like that but that's not gonna full pay because there's penalties and interest sure you don't want to offer somewhere in the $500 a month range that's going to be what's called a streamlined installment agreement the next I call a complex installment agreement I'm the only first thing I've ever seen the call at that but if you owe over $25,000 it's to be much harder to get an installment agreement because you're going to have to justify what you can afford to pay on the installment agreement no more no less now if you've watched the offer and compromise videos that I did you'll kind of understand what I'm talking about but in in brief what you're going to need to do is you're going to need to fill out a collection information statement of some sort and you're gonna have to haggle with the IRS over what your ability to pay is on a monthly basis so if you owe $80,000 and they think that your monthly ability to pay is $1,200 guess what your payment's gonna be bingo $1,200 now there's probably some people watching this video right now who think $1,200 oh my goodness they could never pay that and I tend to agree with you I think that that's pretty high payment for almost every circumstance but the key to this is to negotiating a lower payment in this particular instance is going to be really knowing how the collection information statements work really understanding what an allowable expenses in some pre-planning before you try to go ahead and get your an installment agreement and that's why you need someone like me to help get involved into your IRS bomb mess so that we can negotiate the lowest payment possible now the third installment agreement type is called a partial pay installment agreement and it's called a partial pay because by definition the amount of your payment will not full pay the liability during the life of the statute what do I mean by the life of the statute well you might recall from an earlier video actually there's a video on the collection statute you did not the IRS does not have an unlimited amount of time to collect a tax liability they only have ten years from the date of the assessment of the tax to do so so if you're in a situation where you have thirty six months left on your collection statute your longest collection statute and you oh let's just make it real round numbers thirty six thousand dollars so you have thirty six months left and you have thirty six thousand dollars in tax liability if you are gonna do a complex installment agreement or if you're gonna do a complex installment agreement you would pay something like a thousand dollars a month minimum hopefully you could afford that according to your financial statements but if you couldn't afford the thousand dollars a month you're not going to full pay that liability over the life of the statute hopefully you follow that so if all you could afford to pay was three hundred dollars a month with a 36 month statute you would only pay something like $9,000 give or take over the life of the statute that's why it's called a partial pay installment agreement you'll never full pay the liability now these things are supposed to be reviewed every two years by the IRS I have a theory that they were not going to be reviewed every two years they haven't been around all that long but in my opinion the IRS does not have the manpower to review every one of these things every two years so I would suggest that if you get yourself into a partial pay installment agreement and you have more than two years left you're going to want to go ahead and pay that thing on time every time so you can keep this sweetheart of a deal that you have going now there's so are some other requirements for a partial pay installment agreement the first of which is that you have to exhaust all equity supplies or all all all equity and assets so if you