Prior to agreeing to a monthly Payment Plan, the IRS will want you to become compliant, by filing all of your past due tax returns. Once your returns are filed, if you do not have the ability to pay the IRS in full, but can pay over a period of time, an Installment Agreement can usually be set up between the taxpayer and IRS. Once the Payment Plan is in place, the IRS Collection Division will not bother you, as long as you are current in your tax filing, and payment of taxes owed. Otherwise, your payment plan will default, and Collection Action will once again resume.
Getting the Payment Plan that will allow you to move forward in life, became more difficult, once the IRS demanded more documentation of income and expenses. Having a Tax Professional in your corner can be the difference between having an Affordable Payment Plan, and one that causes you to shortchange other bills. Knowing the IRS rules and Regulations is essential, to obtaining an Affordable Payment Plan.
For those owing less than $10,000, you can accomplish a Payment Plan without Professional help. Make sure you have all of your Tax Returns filed, and prior to calling the IRS, you may want to make a list of your income and expenses. The IRS will want the tax debt paid, most of the time, in a 36 month period of time.
For those owing over $10,000, but less than $25,000, we highly recommend using a Tax Professional, to assure you obtain an affordable payment plan, but one that fits into IRS Collection Guidelines. This will assure you of a IRS Tax Resolution that works for you. The Tax Resolution Services we provide will guide you every step of the way.
Anyone owing over $25,000 will have to provide Financial Statement’s and documentation of income and expenses to the IRS. Representation is essential, otherwise you may find yourself with a payment plan you cannot afford and a IRS Tax Resolution that does not work.