Jul
26
IRS Payment Plan
Filed Under General Interest
IRS Payment Plan
I was looking for information on an IRS payment plan and I found some good information on the website of Joe Mastriano CPA, here’s a interesting quote from his website at www.taxproblem.org:
If you don’t qualify for any relief methods, or if using a relief method leaves you with an unpaid liability that you can’t pay right away, you could set up a payment plan.
Various Types Of Options
Small Dollar Payment Plan- You may easily be able to get up to 60 months to pay a liability if the principle plus any interest and penalties that are part of the original assessment is < $25,000 (notice I said original assessment). You can also buy this down below $25,000 by making an immediate payment. This can be tricky. If you say to the ACS person that you want to buy it down and they are not cooperative you will have to be very persistent. Here’s what you do. Go to the nearest IRS walk-in office and pay an amount that will bring the liability down below $25,000. Get a paid receipt. Then call ACS after you completed your 433a and 433b (if needed). Fax them the receipt if they want it. They can check their system the next day to verify it. Then show them that you can only pay the monthly amount you want to pay. It is a lot harder if you call up and say something like” hey, I was reading the collection manual on your website and it says I can have a 60 month installment agreement, so give it to me”. Boy, will they “give it to you”.
If you have IRS-problems and you are looking for help, please visit our website at www.taxproblem.org.
A currently not collectable (CNC) agreement- If as a result of filling out the collection information forms, the IRS can’t satisfy the payment of the debt by the end of the statute of limitations on collections another option is that they may put you in a CNC status. This means they have considered any equity in assets, and your ability to make reasonable monthly payments that will extinguish the debt in a reasonable collection time frame, and have concluded that you really don’t have the ability to pay. I say take this status from them. Make sure it’s coded on the system. Then work toward resolving the liability. The liability is still accruing interest and penalties (interest only if a trust fund liability), and you will have to pay it later. Try to set yourself up for an acceptable offer in compromise to get rid of the liability. See the chapter on offers.
All you need to know about taxes and the IRS is available freely on Joe Mastriano’s website, and he also has a comment section where he provides quick tips and advice to his users. In order to get more information on the bankrupt tax I called Joe Mastriano’s office and arranged an one hour paid consultancy so he can go over my situation.
