Can’t afford to pay in full right now but can afford to make monthly payments.
Full Pay Installment Agreement or Partial Pay Installment Agreement – Many taxpayers think when faced with taxes owed that their only option is to immediately pay the IRS in full or else IRS will instantly garnish wages or levy bank accounts. This is not always true and the tax professional at Tax Law Center will consider all options, even an agreement to make payments toward taxes owed. An installment agreement (or monthly payment plan) will assist in allowing the IRS to not take enforcement action via levies but allows the taxpayer the time to make payments. If a taxpayer is compliant with all tax filings (not meaning the taxpayer has paid all taxes only that has to file all taxes due), we can negotiation and enter into an installment agreement to pay back the taxes through an installment agreement. As long as the taxpayer remains compliant thereafter in filing and paying future taxes due, the taxpayer can generally remain on an installment agreement by making an agreed upon monthly payment to the IRS for back taxes owed and this agreement stops any future levies, garnishments and seizures.
While this may sound reasonable, in practice the IRS makes this agreement difficult to accomplish. Many times the IRS may want more in a monthly payment then you can afford. The IRS’ logic is based on allowed expenses verses your actual expenses. Our team of tax professionals at Tax Law Center will fight for your rights against the IRS in seeking a payment that our client can truly afford based on what is allowed and in the law. Let us advocate for you in negotiating an affordable IRS monthly payment.
Partial Pay Installment Agreement – One technique that we consider for clients that may only qualify for a monthly payment plan agreement is to enter into a Partial Payment Plan (still a monthly payment plan) which will stop enforcement actions but the amount paid during IRS’ time-limited collection life will be “less” than the total tax liability. Normally, the IRS will require a payment plan that settles the total tax debt and all penalties and interest within the IRS’ collection period to collect on the tax debt. However, a Partial Payment Plan is another tool our professionals at Tax Law Center consider to best lower tax debt paid thereby showing you why we truly are America’s Premier Tax Relief Firm.
A Partial Payment Plan is similar to a settlement in that a taxpayer demonstrates that they can only pay a portion of the tax debt through payments and will make those payments until either until IRS re-reviews case and it shows taxpayer can afford to increase to pay more or pay taxes off or until the IRS time to collect falls off, whichever is earlier. If a bankruptcy or offer in compromise are not viable options and taxpayer can’t pay tax debt in full right now, a Partial Payment Plan is great to consider.Streamlined Installment Agreements – In many cases if the IRS were to examine taxpayer’s financials based on the IRS local and national collection standards would determine that the taxpayers could afford a payment that could make it so taxpayers would have to significantly change their lifestyle.
At Tax Law Center we know the IRS rules and procedures and know when the circumstances arise to use a negotiated streamlined installment agreement for our taxpayer clients best interest. Many times a negotiated streamlined installment agreement payment, if the taxpayers qualify, results in less of a monthly financial burden for our clients and allows them not to have dramatically change their lifestyle if they qualify. Additionally, in many cases a negotiated streamlined installment agreement can help avoid the Internal Revenue Service from filing Notices of Federal Tax Liens or even in some cases can result, with the assistance of Tax Law Center, in withdrawing the Notice of Federal Tax Liens. Come to Tax Law Center as we know all options and will explore all options for you to assist you in your goals.