Oct 10, 2021 / by OsmondMarketing / No Comments

For some clients, the goal is to pay taxes in full as quickly as possible to minimize interest and late penalties. However, other customers have managed to create tax debts so large that full payment is simply not in the cards. These poor souls must be attentive to the expiration of the statute of limitations, to the resolution of debts by supply in the process of compromise or to the relief of bankrupt taxes. For them, a lump-in payment agreement is only a transitional solution and the goal is usually to negotiate the smallest monthly payment accepted by the IRS. Not surprisingly, the IRS`s goal is exactly the opposite — the treasurer wants the largest monthly payment the taxpayer can afford.3 First, the new law “guarantees” in some cases the availability of instalment payment agreements. In particular, the IRS must grant a lump-in payment agreement when liability is less than or equal to $10,000 (excluding penalties and interest); in the last five years, the taxpayer has not failed to file or pay for a file; the financial statements are presented and the IRS finds that the taxable person is unable to pay the tax in full; and the agreement provides for full payment within 3 years. You can request a instalment payment contract online, over the phone, or through various IRS forms. There may be a reintroduction fee if your plan is late. Penalties and interest are still outstanding until your balance is paid in full.

If you have received notice of intent to terminate your instalment payment agreement, please contact us immediately. As a rule, we will not take enforcement measures: if you can pay your credit within 120 days, setting up a payment plan in instalments will not cost you anything. Note that if you have years for which you have not filed a tax return, it must first be prepared and filed before the IRS even considers a instalment payment agreement (or any other type of alternative collection solution to wealth seizure or bank account/salary deposit). And note that adding additional tax obligations for subsequent years delays the established instalment payment agreement. A Partial Payment Rate Agreement (AIPP) allows you to make a monthly payment to the IRS based on what you can afford after considering your essential cost of living. . . .