I am a former IRS Revenue Officer and teaching instructor with the Internal Revenue Service. I am also licensed and certified by the department of Professional Regulation to teach IRS Tax Law.
With that said, here are some top tips you need to know about making payments with the IRS.
1. Four million taxpayers are currently using Installment Agreements to pay their IRS taxes. It is the most common way to close your current IRS issue or case.
2. The IRS will want a completed Form 433-A or 433-F, collection information financial statement, with supporting documentation. They will use this to determine if you are eligible for an Installment Agreement and how much your payments will be.
3. An Installment Agreement stops all enforced collection action immediately. It suspends the open case in the IRS enforced collection system.
4. The Installment Agreement allows you to make reasonable and affordable payments to the Internal Revenue Service.
5. The IRS will release any tax levies they may have filed if an Installment Agreement has been reached.
6. The IRS has two types of Installment Agreements, streamline and long-term. The amount owed determines which agreement you are eligible for. Under $25,000 qualifies for the streamline which can be handled over the telephone.
7. An Installment Agreement still allows you to file an Offer in Compromise.
8. With an Installment Agreement, penalties and interest continue to accrue on the total amount due to the IRS.
9. Federal Tax Liens are not released because of Installment Agreements.
10. The Installment Agreement is only a temporary solution. At the end of the day the tax must be paid in full, the statute expires or the IRS accepts an Offer in Compromise to fully close the case off the IRS system.
Always hire a professional tax firm to resolve your IRS Problems and check out their BBB rating.
Things to look for in a good company:
- History of company
- Firm experience
- Do they have former IRS Agents on staff
- Make sure you can directly talk to the person that will work on your case
- Check on their BBB rating. Use only A or better
All the best! <><
