Reduced Installment Agreements
If the IRS has audited your returns and ruled that you face a substantial tax liability, there may be options available to seek a partial payment plan that fits your financial circumstances. If you already have an installment plan in place, but your circumstances make it impossible to keep up with the required payments, you may be able to negotiate a reduced installment plan, or petition the IRS to assign your tax liability as Currently Not Collectible.
If you are a resident of King County, Pierce County or Snohomish County, Washington, and face a significant IRS tax liability, call to schedule an initial free consultation with an experienced tax law attorney at Insight Law.
What if You Are Nearing the End of Your Collection Period?
The IRS tax collection period may be extended to as long as 10 years. Many taxpayers still owe a large amount of taxes as they near the end of their installment period. If you still face a significant tax liability that you cannot repay, we may be able to negotiate a reduced payment. Setting up or extending an installment plan can often work to your greater advantage than accepting an offer in compromise to pay off a lump sum.
Why Do You Need an Experienced Tax Lawyer?
Installment plans and reduced payments are not automatic. The IRS wants the full amount of taxes you owe, if possible. Before approving an installment plan, the IRS will require a substantial amount of financial information before they will allow a partial payment plan to be set up. Over the course of the repayment schedule, which can be as long as 10 years, the IRS will constantly review your income reporting. Throughout the scheduled repayments, you may be asked to repeatedly prove that you continue to face a financial hardship if you are required to repay in full. Also, if your income declines, you will be required to contact the IRS and go through the same procedure if you need to see a further reduction in scheduled payments. We will work aggressively to protect your rights and financial interests throughout the process.