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Installment Agreement for $250k + Balance

Level 3

A client owes about $400,000 to the IRS and $200,000 to CA from his 2021 tax return. He will not be able to pay the entire amount by April 15 so we are exploring options. The IRS has new installment guidelines that if you owe up to $250,000 in taxes, you are no longer required to provide financial disclosures, provided that you can pay the amount owed within 10 years.


How do we apply?

Does anyone know if there is a similar high dollar agreement for CA?


Also, he will need to pay down the IRS balance to get within the $250k. If he can not do that by April 15th would it be better to file an extension and wait until he can make a large payment to file the taxes and then immediately start the installment agreement?

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