- Overview: Learn about IRS Installment Agreements.
- Problems: Understand the problems associated with installment agreements.
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Solutions: The W.L. Henry law firm’s goal is to solve your tax problems. Find out how the firm uses installment agreements to help provide a solution to your tax debt problems.
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Schedule an Appointment: Schedule a free consultation with a tax lawyer. Colorado office locations are conveniently located in Castle Rock and Colorado Springs. We offer a free phone consultation if you reside outside the Denver or Colorado Springs metro area or in another state or country.
Overview
The IRS can enter into an installment agreement (an IRS payment plan) if the agreement will facilitate full or partial payment of the delinquent tax. The IRS may require the taxpayer to agree to a reasonable time to collect the tax or other conditions that protect the IRS’s interests.
The IRS is required to enter into an installment agreement under limited circumstances, which depends on the amount of the tax liability, the taxpayer’s filing and payment history with the IRS, and the length of the installment agreement. Otherwise, the IRS has the discretion to enter into an installment agreement.
The taxpayer will not qualify for an installment agreement if the tax can be paid in full or part through liquidation of assets, unless special circumstances are present, or the taxpayer qualifies for a guaranteed, streamlined, or express installment agreement. It is important to understand if an installment agreement is the best solution to your tax problems and the circumstances that will lead to the IRS accepting the installment agreement.
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Problems
If a taxpayer enters into an installment agreement, he or she may inadvertently allow the IRS to collect tax that would have been uncollectable. That is, the period for collection may have soon run out, but because of the installment agreement, the taxpayer agreed to extend it!
Additionally, because penalties and interest continue to accrue, an installment agreement may not be the ideal solution to a taxpayer’s tax debt problems. An offer in compromise or penalty abatement may provide a superior tax debt solution than the installment agreement.
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Solutions
The W.L. Henry law firm determines whether an installment agreement is the best solution for you. The firm examines your history and period for collections (statute of limitations) issues. The firm will determine if other tax solutions such as an offer in compromise will better solve the your tax debt problems.
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Schedule an Appointment
Schedule a free consultation to discuss your case with a tax lawyer. Colorado office locations are conveniently located in Castle Rock and Colorado Springs. If you are out-of-state or out-of-country, a telephone conference can be scheduled. All initial consultations by phone or in one of our Colorado offices are free.
Even if you are not sure if you need a tax lawyer, the firm is happy to discuss your tax issues and point you in the right direction.
Schedule a free consultation:
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