An installment agreement is a payment arrangement whereby the IRS allows a taxpayer to pay their tax debt over a period of time by way of a monthly payment. When a payment plan is established, the IRS will not take any further collection action, such as wage garnishment or seizure of bank accounts.
The taxpayer must be current with all past tax returns before beginning an installment agreement. Penalties and interest do continue to accrue until the full balance is paid, however. Also, a tax lien may be filed as part of the terms of the installment agreement, depending on the amount of the total tax debt. To find out more about this option to pay your IRS tax debt, contact the tax attorneys at JEFFREY BURR today.
It often occurs when a taxpayer attempts to establish an installment agreement on their own, that the IRS wants to collect the taxes as fast as they can. In many cases, the unrepresented taxpayer finds themselves in an installment agreement that is too burdensome. This, in turn, often leads to a default of the installment agreement and the beginning again of the collection machine. Therefore, it is critical to have an affordable agreement established properly from the very beginning.
If you cannot afford to make monthly payments and do not qualify for any other type of relief, such as an Offer in Compromise, we may negotiate to have your account placed in a Currently Not Collectible (CNC) status. Under CNC status, you will not have to make any payments and there will not be any type of collection action unless there is a material change in your financial circumstances.
Get the help you need with an installment agreement by contacting a Nevada tax attorney at JEFFREY BURR.
If you fail to pay your back taxes, it can result in IRS penalties and interest that can compound over years and make your tax debt substantially larger than it initially was. Non-payment of this debt can then result in even more IRS penalties and interest, a levy on your wages or bank account, a lien against your property, or even a seizure of your assets. IRS Penalties can be applied for filing your tax return late or for paying your due tax late.
The IRS penalty for filing late is generally 5% each month, or partial month, and can be up to 25% of the amount due on your tax return. There are some situations and circumstances in which you can have your IRS penalties abated or eradicated either partially or in full for one tax year or multiple tax years. To submit this Penalty Abatement request to the IRS, a taxpayer must have reasonable cause that is specific for each year and must be able to explain why the penalties should be removed.
Besides an Offer in Compromise, the IRS offers an alternative program for reducing delinquent tax debt. Clients seeking tax relief from their tax liability can still be helped. The tax attorneys at JEFFREY BURR can work with you and make payment arrangements that the IRS will allow. If there were circumstances beyond your control that prevented you from paying your tax debt and led to delinquency, we are able to challenge the penalties (Penalty Abatement) that have built up by preparing and filing a Form 843 Penalty Abatement Request.
Relief from penalties falls into four separate categories:
If an Offer in Compromise is not the best solution in resolving your tax debt, a Penalty Abatement may be a possible alternative.
Expedited this because I had an impending surgery…thanks! Derek explained everything very clearly. He was very patient and listened to all my concerns.
Timely responses to all of my questions. Knowledgeable and professional.
Service was wonderful by all employees. You can tell they care about the person in front of them.
The ease and convenience. Derek was excellent at explaining the details of our trust and the process.
Mr. Hunsaker was very knowledgeable. He listened to our request and was very good in his explanations.
Attentiveness, flexible meeting times, promptness.
Everyone was professional, friendly and helped us get our Will and Trust updated just as we needed.
Very professional, flexible scheduling, thorough, responded immediately to inquiries, excellent price for services rendered.
Extremely keen knowledge of probate and trust administration.
Rebecca Haines was very professional. We both felt our experience with her was in both of our interests.
Very professional manner in dealing with me. Thorough. Competent. They listened to my input and followed my wishes. Suggested excellent improvements to my previous Washington State will.
Friendly, courteous, helpful in answering questions and most importantly, trustworthy. Mr. Hatch and his paralegal are the nicest people I have ever dealt with. I would recommend them to anyone I know.
They were able to resolve my issue with the IRS completely that I had attempted to do many times prior.
"Very professional on preparing my trust"
"Not feeling rushed. Derek did a great job clearly explaining everything asked of him."
"Helpful and made it easy, very caring about our needs and wants."
"5-star rating in my book. I could never have done it without your office staff."
"Professional staff, listened to requests, answered ALL questions, made sure I understood."
"Handled with the best ease under the circumstances. Very compassionate, however, straightforward, thorough handling of paperwork."
"The staff at Jeffrey Burr were exceptional. They were outstanding and compassionate. I would recommend the firm to others. Thank you for all your help."
"Everybody was friendly and explained things in simple terms."
"I had the feeling that my family and my wishes were important. I'm so happy to know everything is taken care of."
"Revised documents as necessary and was thorough in explaining."
"So nice, yet professional—we are so pleased with your staff and service. Thank you."
"Very competent, friendly, Ms. Haines even stopped by my condo to notarize a statement for Bank of America, saving me a long drive to your office."
"Early on discussion of what to expect. All questions immediately addressed as well as genuine care for my situation."