Taxpayers often come into our office looking for an Offer In Compromise, or some other option, where they don’t have to pay any or all of their IRS Debt. The reality is that most people with a good job don’t qualify for an Offer and a payment plan is often the best alternative.
Are there advantages of entering into a Payment Plan?
There are several advantages that taxpayer’s often don’t recognize but that are real benefits of being in an approved and current installment agreement. I’ve listed a few of those below:
- The IRS will NOT levy your wages, your bank account or any other assets if you are in an installment agreement so you have peace of mind.
- Depending on the amount of your tax debt, you may be able to avoid a Federal Tax Lien or have a lien withdrawn in an installment agreements.
- You can cut your monthly penalty for late payment in half (along with the related interest) but being in an approved agreement.
- First Time Penalty Abatement requires that a Taxpayer have paid or arranged to pay to obtain the penalty removal. The Installment agreement will fit that requirement.
- Sometimes a taxpayer needs time to be able to qualify for certain alternatives that they prefer to the installment agreement. Those may include an Offer In Compromise (Settling for less than the full amount), Bankruptcy, or other alternatives. An Installment agreement can buy time while working on the other alternative.
As you can see above, there are some real advantages of getting an approved Installment Agreement. Often, it's the best option for a Taxpayer with IRS Debt.
Do You Need Help?
If you need help in Setting up an Installment Agreement with the IRS or with any other IRS issue, I’d be happy to talk with you. Please give me a call at (972) 821-1991 or email me at bob@jablonskyandassociates. If you’d like to learn more about us, please visit our website at https://jablonskyandassociates.com/.