Free Tax Payment Agreement Template
Tax Payment Agreement
This Agreement is made and entered into on this 15th day of January 2050, by and between:
Taxpayer Name: John Doe
Address: 123 Elm Street
City, State, ZIP Code: Springfield, IL 62701
Phone Number: (555) 123-4567
Email Address: johndoe@email.com
(Hereinafter referred to as the "Taxpayer")
AND
Tax Authority: Internal Revenue Service (IRS)
Address: [Your Company Address]
(Hereinafter referred to as the "Tax Authority")
RECITALS
WHEREAS, the Taxpayer owes certain taxes, penalties, and interest in connection with their tax obligations for the tax year 2045, as detailed below:
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Tax Year(s): 2045
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Tax Amount Due: $7,500.00
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Interest and Penalties: $1,200.00
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Total Amount Due: $8,700.00
WHEREAS, the Taxpayer has requested the Tax Authority to allow them to pay the outstanding amount in installments due to financial hardship.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:
1. Total Debt and Payment Terms
1.1 The total amount due, including taxes, penalties, and interest, is $8,700.00.
1.2 The Taxpayer agrees to pay the amount of $725.00 per month starting on the 1st day of February, 2050.
1.3 The monthly payments will continue until the total debt, including any additional interest and penalties that may accrue, is fully paid.
1.4 Payments will be due on the 1st day of each month and must be made to the Tax Authority at the address provided above or through an agreed-upon electronic payment method.
2. Payment Method
2.1 Payments can be made by check, money order, or electronic transfer.
2.2 The Taxpayer shall ensure that each payment is received by the Tax Authority no later than the due date specified in Section 1.3. Late payments may incur additional penalties or interest, as determined by the Tax Authority.
3. Failure to Comply
3.1 If the Taxpayer fails to make any payment in full and on time, the Tax Authority reserves the right to declare the entire balance of the debt due immediately.
3.2 If the Taxpayer fails to comply with the terms of this Agreement, the Tax Authority may pursue all available legal remedies to collect the debt, including but not limited to garnishment, liens, or other collection actions.
4. Review of Financial Condition
4.1 The Taxpayer agrees to provide the Tax Authority with updated financial information, if requested, to confirm that they remain eligible for the installment agreement.
4.2 If the Taxpayer’s financial condition changes significantly, they agree to notify the Tax Authority immediately. The Tax Authority may modify or adjust the terms of this Agreement if there is a change in the Taxpayer’s financial situation.
5. Interest and Penalties
5.1 Interest and penalties on the outstanding balance will continue to accrue until the debt is paid in full.
5.2 The Taxpayer is responsible for paying any additional interest or penalties that may accrue on the remaining balance during the term of this Agreement.
6. Termination of Agreement
6.1 This Agreement may be terminated by either party if the other party fails to comply with the terms and conditions of the Agreement.
6.2 In the event of termination, the entire remaining balance becomes due immediately.
7. Miscellaneous Provisions
7.1 Governing Law – This Agreement will be governed by the laws of the United States and applicable state laws.
7.2 Modification – Any modifications or amendments to this Agreement must be made in writing and signed by both parties.
7.3 Severability – If any part of this Agreement is found to be unenforceable, the remainder of the Agreement will remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Tax Payment Agreement as of the day and year first above written.
For the Taxpayer:
Name: John Doe
Date: January 15, 2050
For the Tax Authority:
Name: [Your Name]
Title: Taxpayer Services Officer
Date: January 15, 2050
