Are Irs Form 13844 Debit 2024

Everyone, my name is Bruce Roth, and my guest today is Dave Horwood who is an enrolled agent and also the founder of Torchlight Tax and Financial Services. Dave, can you explain what an installment agreement is when dealing with the IRS? Are there different types and what are the implications? Sure, Bruce. When you file your taxes and find yourself unable to pay the full amount, the IRS typically offers an installment agreement. This allows you to pay off the owed amount over a period of up to five years, particularly for small amounts. Initially, it is relatively easy to obtain this agreement. However, as your income increases, it becomes more challenging to qualify. Also, depending on the amount owed, you may need to provide additional financial information. Some individuals may be hesitant to share their complete financial details with the IRS, so it's crucial to be aware of the implications. So, just to clarify, if you reach the end of the tax year and don't have enough funds to cover your taxes, an installment agreement can protect you from penalties and immediate levies. However, the IRS may still charge interest on the outstanding balance. Additionally, penalties may vary based on your circumstances. It's worth noting that the IRS won't seize your home or bank account immediately if you don't have an installment agreement in place. It's important to consider this option and conduct your own research or seek assistance from a tax professional, such as an enrolled agent, who can negotiate an installment agreement on your behalf by signing a power of attorney. Thank you for your insights, Dave. We appreciate your expertise on this matter.