Bellevue And Seattle IRS Tax Problem Lawyer
If full payment cannot be made due to the financial circumstances of the taxpayer, a partial payment plan may be arranged. These can be difficult to set up as the IRS requires a substantial amount of taxpayer financial information before they will allow a partial payment plan to be set up. The advantage of such a payment plan is that the 10 year period of collection continues to run while the plan is in place.
These can be a little tricky to maintain as the IRS will constantly ask the taxpayer to prove that they still do not make enough to full pay that tax liability. Also, if income declines, the taxpayer must contact the IRS and go through the same procedure as far as providing financial information to the IRS to obtain a further reduction of the payment.
This can be very useful for liabilities which are nearing the end of the 10 year collection period. The IRS will not force you to pay more than you can on a monthly basis if you have few assets. These can be used to minimize the amount ultimately paid to the IRS by the end of the collection period, and can often be more advantageous than an Offer in Compromise in such cases.