Requirements to Get on a Payment Plan with The IRS

Education & Training with Tax Raj Solutions LLC

By Rajbir Athwal

I represent taxpayers in the Boulder, CO and Denver, CO metropolitan areas who have issues with unpaid taxes  and outstanding tax liabilities, back taxes and wage garnishments.


In this article, I answer the questions regarding the importance of tax compliance to resolve the taxpayers' tax issues with the IRS and the State taxing authorities. So you ask, what does it mean to be in tax compliance? It means that all tax returns have been filled and the taxpayer is making their tax payments properly. Overall, tax compliance refers to taxpayers’ decisions to follow the federal, state and international tax laws and regulation. Taxpayers need to understand that if they have unpaid tax liabilities and want to work out a deal with the IRS and/or The State Department of Revenue, a critical part of the deal is that they maintain their tax compliance in future. Any failure to comply with the requirement results in voiding any agreement they made with the tax authorities.


Following are requirement for compliance before any agreement can be negotiated:

  1. File tax returns:  – All tax returns due need to be filed. The IRS generally considers the taxpayer to be in compliance for the purpose of collection, when they have filed their last 6 years tax returns.
  2. Current year tax payments: Taxpayer is making their current year tax payments:
  1. Employees have enough withholding so that they do not owe money at the end of the year.
  2. Self-employed have made quarterly estimated tax payment
  3. Business taxpayers have made quarterly payroll deposits
  1. Future Tax return: All future tax returns need to be  filed on time and taxpayers should not owe money when they file. They have to be compliant for a minimum of five years.
  2. Agreement payment: The taxpayer pays any agreement payment on or before the due date.


If you would like to discuss your options, please give this office a call.

If you or somebody else you know are having IRS issues please feel free to contact me or call me 301-461-2022. The IRS doesn't like to be ignored. Be proactive.

Enrolled agents are federal tax practitioners licensed by the Treasury Department.

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