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Tax Payment Agreement Template for United States

A Tax Payment Agreement is a legally binding contract between a taxpayer and tax authority (typically the IRS or state tax agency) in the United States, establishing terms for the systematic payment of outstanding tax obligations. This agreement outlines payment schedules, amounts, methods of payment, and consequences of default, while complying with federal and/or state tax regulations. It provides a structured approach to resolving tax debts while avoiding more severe collection actions.

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What is a Tax Payment Agreement?

A Tax Payment Agreement becomes necessary when a taxpayer cannot fully pay their tax obligations and requires a structured payment plan. This document is commonly used in the United States to formalize arrangements with the IRS or state tax authorities, providing a clear framework for resolving tax debts through installment payments. The agreement typically includes payment terms, deadlines, default provisions, and may require financial disclosures depending on the amount owed. It offers protection for both the taxpayer and tax authority while ensuring compliance with applicable tax laws and regulations.

What sections should be included in a Tax Payment Agreement?

1. Parties: Identification of taxpayer and tax authority

2. Background: Context of tax liability and reason for payment agreement

3. Definitions: Key terms used in the agreement

4. Payment Terms: Amount, schedule, and method of payments

5. Default Provisions: Consequences of missing payments or breaching agreement

6. Term and Termination: Duration of agreement and conditions for termination

What sections are optional to include in a Tax Payment Agreement?

1. Collateral: Security provisions for agreements involving substantial tax liability

2. Third-Party Authorization: Authorization section for when a representative acts on taxpayer's behalf

3. Financial Disclosure: Details of taxpayer's financial information and ability to pay for complex arrangements

What schedules should be included in a Tax Payment Agreement?

1. Payment Schedule: Detailed breakdown of payment amounts and due dates

2. Tax Liability Statement: Itemized list of tax obligations covered by agreement

3. Financial Statement: Current financial information (Form 433-F or similar) for agreements requiring financial verification

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Genie AI

Document Type

Tax Agreement

Cost

Free to use

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