If you owe the Internal Revenue Service money and want them off your back, there may be some more good news in store for you. In addition to the Offer in Compromise Program, the Service announced they are now expanding the Installment Agreement requests to include assessed balances of tax, interest and penalties between $50,000 and $100,000. During this trial period, more taxpayers will qualify to have their installment agreement processed in a streamlined manner.
The criterion under testing is this: Individual taxpayers with an assessed balance of tax, penalty and interest between $50,000 and $100,000 may experience accelerated processing of their installment agreement request. This will occur if the proposed monthly payment is the greater of the total assessed balance divided by 84 – or – the amount necessary to fully satisfy the liability by the Collection Statute Expiration Date (that’s the last day the IRS is legally allowed to collect back taxes).
An installment agreement is a payment plan for taxpayers who owe money to the Internal Revenue Service. The Installment Agreement is a program that allows taxpayers to pay their tax debts in monthly installments, especially if they are experiencing economic difficulties and, cannot pay the balance in one lump sum.
Is this good news? Perhaps. Is it easy to get into an agreement you can live with? Depends. The first requirement that must be met to secure an Installment Agreement is compliance, filing ALL of your tax returns and being up to date with all of your current tax obligations. Secondly, you may have to demonstrate to the Internal Revenue Service that you really can’t afford to pay that much. To do that, you may need to fill out one or more forms and submit them to the Internal Revenue Service. Then wait for an answer.
Or, you could consult with a Tax Resolution Specialist who knows the ins and outs of how the IRS works. The IRS can be a very scary place for many taxpayers. That’s why it’s crucial for you to do your homework and find a qualified IRS tax relief professional like Ron Friedman Tax Relief Pro. All of these options require IRS forms, documentation and situational analysis. At Ron Friedman Tax Relief Pro, we’ve proven our expertise and have gotten taxpayers payment arrangements that fit YOUR budget and not the IRS’s.
We encourage you to contact us for your FREE no-obligation confidential consultation.
Till next time,