Can You Have More than One Installment Agreement with the Irs

If you owe the IRS money, you may be wondering if it`s possible to set up more than one installment agreement at the same time. The good news is, yes, it is possible to have multiple installment agreements with the IRS.

An installment agreement is an agreement with the IRS to pay your tax debt over time. This can be a helpful option if you`re unable to pay the full amount you owe upfront. However, if you owe more than one type of tax debt, you may need to set up multiple installment agreements.

For example, let`s say you owe both income tax and payroll taxes. You could set up one installment agreement for your income tax debt and another for your payroll tax debt. Each agreement would have its own terms and payment amounts.

It`s important to note that you`ll need to meet certain qualifications to set up an installment agreement with the IRS. You must have filed all required tax returns and owe less than $50,000 (including interest and penalties) to qualify for a streamlined installment agreement. If you owe more than $50,000, you`ll need to provide financial information to the IRS to set up a payment plan.

It`s also important to keep up with your installment agreement payments. If you miss a payment, the IRS could consider your agreement to be in default. This can result in additional penalties and interest, as well as possible collection actions like wage garnishment or bank levies.

In summary, if you owe more than one type of tax debt, you can set up multiple installment agreements with the IRS. However, it`s important to make sure you qualify for an installment agreement and to keep up with your payments to avoid defaulting on your agreement. If you`re unsure about your options for paying your tax debt, consider consulting with a tax professional for guidance.