The Internal Revenue Service will allow you set up what is known as an IRS payment plan to repay your tax debt over time. This is also called an installment agreement. An installment agreement can be used for most types of taxes including income tax, payroll tax, and all types of business taxes. However the standards for an installment agreement repayment plan in which the amount of your monthly payment is determined, can widely vary.
First thing. Get current.
If you owe back taxes you must first be sure that all of your tax returns are current. It is important to include the current year in case you owe any taxes for the present year. Generally the installment agreement you negotiate will be accepted by the IRS and it will put your account in good standing. This process will generally prevent IRS collection efforts such as garnishments or levies. The amount you can pay back to the IRS is determined by using a collection statement known as form 433. It resembles a credit application that you might complete for a bank loan. You can avoid this type of paper work if the taxes involved are from a currently filed tax return (1040) and you are offering to pay the taxes over a 12 to 24 month period. This request can be attached to the current year filing. The installment agreement payment must be a direct debit payment so you will need to give the IRS your bank info. You will then receive an acknowledgement as to your installment agreement request.Read More
Getting IRS Fresh Start Tax Relief just got a whole lot easier thanks to a new rule established by the IRS allowing taxpayers to set up payment plans that are not only affordable for taxpayers to make, but can also significantly reduce your IRS tax debt.Read More
Can I Negotiate Myself?
The short answer is yes, you can negotiate with the IRS. You can work with the IRS directly and successfully to complete a tax settlement, but taking advantage of a free consultation from a qualified professional before you start is a good way to get a favorable settlement that you can live with. Deciding on going alone, or working with an IRS certified and approved Enrolled Agent or a qualified Tax Negotiator can be a difficult choice to make. But working with someone who has experience can make a huge difference in the outcome of the negotiation and the amount of your settlement.Read More