For those with significant tax liabilities, a lump-sum payment to settle their tax debts may not be a realistic option. Unfortunately, if nothing is done to resolve this outstanding debt, the IRS will waste no time pursuing wage/bank garnishments or property liens/seizures. However, there are many options for settling tax liabilities and an installment agreement can give you the financial breathing room that you need.
Understanding Installment Agreements
When the IRS accepts installment agreements, it allows delinquent taxpayers to settle tax debt through monthly payments made over a period of time. For those who are facing immediate IRS levies or property seizure, this solution brings much needed relief. Once an installment agreement is entered into, the law requires that all IRS collection efforts cease. While the IRS may still place a lien on your property, they cannot act upon it if you make regular payments as agreed upon.
It is important to note that penalties and interest will continue to accrue each month on any outstanding portion of the tax debt.
Do Not Try To Negotiate With the IRS on Your Own
When proposing the terms of an installment agreement, the IRS will typically take into account your liquid assets as well as your family’s business’s allowable expenses. However, the IRS is not always fair or realistic when creating these agreements. That is one of the main reasons it is important to seek legal advice from a qualified tax attorney.
At Terrence A. Grady & Associates Co., L.P.A., tax law is our main focus. When the IRS presents an unrealistic installment agreement, our lawyers can help. We are very familiar with the IRS’s internal policies and procedures related to these collection alternatives and know what arguments to make to get you the most reasonable monthly payment arrangement. We also have the legal knowledge and skill to negotiate a better offer that is viable for our clients and also satisfactory to the IRS.
With more than 30 years of legal experience, attorney Grady is consistently listed among the Best Lawyers in America for taxation issues. He understands the complex IRS regulations associated with installment agreements and has helped a significant number of clients find solutions to outstanding tax debt.
Our law firm can facilitate installment agreements for individuals, families and businesses.
Contact Our IRS Payment Plans Lawyers
Learn how our Ohio law firm can help you satisfy payment of your back taxes through an installment agreement with the IRS. Contact our Columbus tax attorneys to learn more.