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Richmond · Installment Agreements

IRS installment agreements in Richmond

When you cannot pay the IRS in full, a payment plan lets you pay monthly, and where you live around Richmond can change the amount.

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Whiteford Tax Defense helps individuals and businesses in the City of Richmond and nearby counties arrange IRS installment agreements. We also help put a plan back on track after a missed payment or a change in your finances.

Part of the process is local to Richmond. When the IRS works from a financial statement, it generally counts housing and utility costs only up to a figure set for your city or county. You can also make your request in person, by appointment, at the IRS office at 400 North Eighth Street. The same building houses the Taxpayer Advocate Service's Virginia office, which may help if a plan problem gets stuck.

For the general rules, see our page on how IRS installment agreements work. In short, the IRS does not have to accept every plan, and it will not approve one until your past returns are filed. If some are missing, we can help you bring unfiled returns current. Interest and certain penalties keep adding up until you pay in full. But once a plan is in place, the IRS generally cannot levy your wages or bank account.

How the IRS sets your payment around Richmond

For a smaller balance, you may qualify for what the IRS now calls a simple payment plan. It replaced the streamlined agreement and needs no financial statement. The plan must pay off the balance, with interest and penalties, before the IRS's time to collect runs out.

For a larger balance, the IRS usually sets the payment from a financial statement of your income, expenses and assets. It will not always allow what you spend. For many everyday costs, it uses published allowances called the Collection Financial Standards. A reasonable payment, backed by records, makes a stronger request.

Housing and utilities are where Richmond geography comes in. The IRS sets that allowance county by county and gives independent cities their own figure. So a household in the City of Richmond is measured against a different figure than one in Henrico, Chesterfield or Hanover. The questions below cover what happens when your costs run higher.

What to do when a plan is refused, ended or out of reach

If the IRS rejects your request for a plan, you can appeal, but the window is short. Our page on IRS appeals in Richmond explains the steps.

Once you have a plan, a missed payment can put it in default. The IRS may then warn that it plans to end the plan. Our page on that notice of intent to end your plan explains how to fix the default or appeal, so act before its deadline.

And if no monthly payment fits your budget, an offer in compromise may settle the debt for less than you owe. We can help you weigh both paths before you commit to one.

Common matters we handle

  • Requesting simple payment plans for Richmond taxpayers with smaller IRS balances
  • Building plans for larger balances, where the IRS applies its cost figures for your city or county
  • Keeping levies and other enforcement on hold while a plan is pending or in place
  • Bringing unfiled returns current so you can qualify for a payment plan
  • Reinstating or reworking a plan after a missed payment or a change in your finances
  • Requesting withdrawal of a filed federal tax lien notice for taxpayers paying by direct debit

A note on admissions Federal tax matters are handled nationwide, including IRS examinations, appeals, collection, and Tax Court litigation. Virginia state and local tax matters are handled together with Whiteford attorneys admitted in Virginia, or with co-counsel where a matter requires it.

Why taxpayers choose Whiteford

  • Based in Richmond and experienced in resolving federal tax debt, with an eye on any state balance you also owe
  • We assemble the financial picture the IRS expects to see, before you ask for a plan
  • Part of a law firm founded in 1933, focused on resolving the debt rather than dragging out a dispute

Frequently Asked Questions

Does it matter to the IRS whether I live in the City of Richmond, Henrico, or Chesterfield?
It can change your payment. The IRS checks the housing and utility costs on your financial statement against a standard set county by county. Virginia's independent cities are listed on their own, and the current figures for the City of Richmond, Henrico, Chesterfield and Hanover all differ. You are generally allowed the standard or your actual cost, whichever is less. Vehicle operating costs follow a South region figure, though Fredericksburg and Spotsylvania use the Washington, D.C. figure. Food, clothing and out-of-pocket health care use national standards.
Our rent in the city is higher than the IRS housing figure for Richmond. Will the IRS expect us to move?
Not necessarily. The standards are guidelines. If the Richmond figure would not cover your basic living expenses, the IRS can allow a higher amount that you document. For housing, it weighs what a move would cost you, including longer trips to work or school. Inconvenience alone does not justify a higher allowance.
Our costs run above the Richmond figures, but we could pay off the IRS within six years. Will the IRS allow them?
It may, if they are reasonable. The IRS can generally allow such expenses without proof if you can pay in full within six years. That payoff must include projected interest and penalties and come before the IRS's time to collect runs out. You also need to stay current on filing and payments. If you cannot pay within six years, the IRS may give you up to a year to bring an excessive expense down.
Is there an IRS office in Richmond where I can request a payment plan in person?
Yes. The IRS's Taxpayer Assistance Center at 400 North Eighth Street takes payment plan requests in person. Call ahead to book your visit. You can also apply online, by phone, or by mail on Form 9465. If a plan problem is causing you financial difficulty, or normal IRS channels have not fixed it, the Taxpayer Advocate Service may be able to help. It is an independent organization within the IRS, with at least one office in every state. Its Richmond office is in the same building.
Contact Michael March