Many people owe the IRS substantial sums of money that are not within their person budget. When this occurs and you know that the IRS liability is correct, one available solution is to establish an installment plan with the IRS.
The IRS will allow you to set up an installment plan; however, they will continue to charge you penalties and interest while you are on the plan. Normally installment plans are set up for a maximum of 5 years and the IRS sends you a monthly statement showing how the payments are being applied to your debt. In order to set up an installment plan, you need to complete specific forms, submit them to the IRS and await approval. Generally they are approved without any question.
This is an excellent opportunity for people to acknowledge their tax liability with the IRS and arrange an installment plans to resolve their liability. Choosing to pursue an installment plan with the IRS may improve credit scores and protect your current and future tax refunds, earnings and property from IRS levies and leins.
We can assist you in determining an appropriate installment plan which will meet IRS standards and work with your personal budget. Please contact us to discuss your IRS tax situation.