If you don't qualify for the Offer-in-Compromise program, a Payment Plan may be a way to resolve your tax problem. Setting up a payment plan with the IRS or State gives you a little more time to pay off your tax debts, allowing you a pre-determined monthly amount to reduce, and ultimately eliminate your tax liability.
The advantage of an Installment Agreement is that it permits you to pay your debt over time, stopping enforced collection by the IRS or state tax agency, such as wage and bank garnishments.
Unfortunately, penalties and interest will continue to be charged on your outstanding balance as you pay the debt off. You are required by law to pay the interest on your tax debt.
Avoiding enforced collection activity by the IRS or state tax agency, such as wage levy, bank levy and/or seizure of assets, is of utmost importance. It is important not to ignore a tax notice that requests payment of the outstanding tax debt.
Our firm will contact the IRS or state to negotiate an Installment Agreement for you to pay your tax debt. Our experienced tax professionals will prepare the necessary financial and collection information statements, and provide the IRS and/or state with the information needed to determine the monthly payment required to reduce your outstanding tax liabilities.
