IRS Payment Agreements, IRS Installment Agreements, Payment Plans – Making Payments to the IRS on your back taxes
After 10 years of working for the IRS and over 28 years of private practice do not expect the IRS do you any favors if you are seeking a IRS payment plan, installment agreement or a pay off plan. IRS will always do what is in their best interest and that is NEVER in your best interest.
Keeping that in mind and hire a good tax professional so you do not get bullied around.
If you are trying to get a Payment Agreement, Installment Agreement, Payment Plan with the IRS and you do not fit into the National Standards that the IRS insists on you will want to read about the one year rule.
Most taxpayers have no idea what they are doing when they call the IRS and want to set up a payment agreement, installment plan, or a payment agreement.
There are so many options available to them and that’s is why it is best to call a experienced tax professional.
There are five different types of agreements, payment plans and IRS will put you only into the agreement that they feel is best for the IRS.
The IRS is not looking for your best interest in this tax matter, they are only looking what is in the best interest of the federal government and as a result taxpayers get ripped off by not understanding all the rules that govern agreements.
With this now said there is a IRS one year rule that helps the taxpayer.
Most taxpayers when they call the IRS do not met the national standards tests for income and expenses. Something is always out of balance. IRS will say that is too bad and try to extract money from you that you just do not have.
You should be very familiar with the National Standards Test before calling IRS. You can check out more on our site.
The one year rule for payment plans or Installment agreements can work to help you.
One Year Rule: Insist in this and do not be bullied!!!
Taxpayers who cannot full pay their accounts within five years may be given up to one year to modify or eliminate excessive necessary expenses. By modifying or eliminating some conditional expenses, a taxpayer may be able to full pay the liability plus accruals within the five-year limit. This would enable a taxpayer to retain some conditional expenses.
Reminder:
The One Year Rule is not applicable to corporations, partnerships, Limited Liability Companies (LLC) where the LLC is identified as the liable taxpayer, or any Business expenses.
So when the IRS tells you your car payment is to high or your rent or mortgage is too much ask to speak to the supervisor and request the one year rule.
IRS Payment Agreements,Installment Agreements, Payment Plans call us for more information today.
