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The IRS will almost always accept
some type of payment arrangement for past due taxes. There are
certain pre-requisites which you must meet. If you qualify, then you
can proceed with arranging an installment agreement.
The negotiation with
the IRS will either take place over the phone with ACS (Automated Collection
System), or in person with an IRS Revenue Officer.
The total dollar amount you owe usually dictates with whom
the negotiations will be handled. Typically, IRS Revenue Officers are not
involved in cases where the amounts owed are less than $25,000. The IRS will
ask you to complete a personal financial statement and if a business is
involved, then you will need a business financial statement. The IRS has
determined allowable monthly expenses for individuals, which will be matched
against your actual monthly expenses. The difference between your monthly
income and your allowable monthly expenses will be the amount that the IRS
will require you to pay on a monthly basis.
These monthly payments will continue until your outstanding
tax liabilities are paid in full. WARNING! The IRS continues to add
penalties and interest while you are making monthly payments.
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