OTHER RESOURCES

FORMS AND FORMULAS

IRS INSTALLMENT PAYMENTS

Installment plans provide for the full or partial payment of the tax debt in smaller more manageable amounts.  Payment plans are generally available for those that do not qualify to participate in other programs that may provide relief.

STATUTE OF LIMITATIONS

Installment agreements typically seek to collect the debt within 36 months and always before the 10 year statute of limitations for collections expires.

The running of the 10 year collection statute is suspended:

  • While a proposed agreement is pending, 

  • For thirty days after the rejection of an payment plan, 

  • For thirty days following termination by default, and, 

  • During any appeal of the termination or rejection of a installment agreement.

CONSTRAINTS OF

You will generally be required to file back tax returns.

You will be required to remain in tax compliance for an installment agreement, to remain in effect.  In essence, you must timely file and pay your current taxes over the life of the payment agreement.

Self Help

ADMINISTRATIVE FEES

IRS Administrative fees to initially set-up installment payment agreements range from $43.00 - 105.00 depending on your financial situation and method of payment.

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Failure to perform as agreed can result in default, has the potential to void installment payment plans and can result in either a reactivation or restructuring services fee.

IRS and State liabilities can be paid over time by structuring withholdings from payroll checks and using planned refunds as yearly contributions to retire State and IRS tax debts.  This especially, works well if you are not yet pursued.

Example:  Husband and Wife both work are paid weekly and each request an additional $20.00 withheld per week.  The debt will be reduced by $2,080.00 a year.

TAX LIENS AND LEVIES

WAGE WITHHOLDING AND ARRANGED REFUNDS

A tax lien is generally filed to secure an interest in property while installment agreements are in effect  But, execution of levies and seizures against wages, personal and real property is suspended:

  • While proposed agreements or an offer in compromise application is considered, 

  • For 30 days after the rejection of proposed installment payment plans.

  • After, the Date of petition for bankruptcy.  

  • While legal tax proceedings are pending.  

  • For any period while a timely appeal of rejected or terminated installment payment plan is evaluated. 

  • While agreements are in effect.

Income Tax Services

It is vital, that you consider your month to month expenses and current tax obligations to determine the amount of future income available for retiring the tax debt.  to accomplish this task IRS Form 433A or a comparable state form is to be completed.  If you have an ownership interest in a business and actively participate in management decisions you must also complete tax Form 433B and integrate the results into Form 433A in compliance with, the following formulas irs irs

This discussion provides detailed instructions to determine the amount of your adjusted net realizable equities or net worth.

AND

This article will help determine the amount of your monthly adjusted income available for payment after providing for items of necessity and will therefore address issues related to tax authority imposed financial standard parameters. 

Note:  Most state revenue departments have adopted the IRS forms and formulas.

BACK TAX RETURNS

You will be required to file back tax returns as a condition of your installment payment plan terms

Often, individuals find themselves in a predicament were they have not filed back tax returns, are confronted with the prospect of wage garnishments and forced to enter into an installment payment plans.

Tax Debt Relief

You typically, have 30 days before you are required to make your first installment payment, this presents a window of opportunity for you to file back taxes.  You may reduce the amount of your required payment each month, eliminate the debt altogether or discover refunds due.

Contents: Forms and Formulas, Net Realizable Equities, Net Income, Future Income, Reasonable Collection Potential.

We provide a free tax analysis and subsequent opportunity to discover with a brief interview all options available to settle your back tax debt.  with this offer, we guarantee no additional contact unless solicited, by you!

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