Tax Payment Plan by the IRS
Undoubtedly, the most common way of paying off burdensome tax debts is the payment plan. This method of payment makes eliminating your debt more manageable and preempts more severe measures like tax levies by the IRS. In that sense, payment plans are like a God-send.
In negotiating a payment plan, you would need to bear in mind some key points.
Firstly, always maintain an attitude of respect when dealing with the IRS. Granted, it may be utterly frustrating at times due to so much red tape, but they are the ones who will determine your financial future, so be nice.
Secondly, do not delay responding to any IRS correspondence or query even if you do not have the money to pay what you owe. Keep the lines of communication open even if you have nothing to say. Before things get worse and the IRS initiates severe measures to get you to pay up, you can ask for a payment plan and they will be much more willing to give it to you.
One big advantage of a payment plan is that it puts a stop to all kinds of other drastic measures the IRS might want to take against you. All the methods that the IRS uses to collect money exist for one reason – To get your attention so you will agree to a payment plan or some other form of collection. Most of these drastic actions, like a tax levy, cost the government time and money. It is far easier to just set up a payment plan so you can get out from under your debt a little at a time. As accommodating as the IRS wants to be, however, you have to be just as accommodating or there won't be a payment plan offer waiting for you.
It is quite common to find people agreeing to a payment plan even though they cannot keep to it. They do this to help avoid a more serious payment collection method such as a levy or a lien. A payment plan also can buy themselves time so they can apply for an offer in compromise or remove other severe collection methods.
To sum up, the IRS is more than willing to help you arrange a payment plan as long as you are in good standing with them.
Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.
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