If you do not qualify for an Offer in Compromise, an Installment Agreement may be the best way to resolve your tax liability. Although an Installment Agreement may sound like a simple concept, in practice, it can be very difficult to obtain an affordable Installment Agreement without professional assistance. Moreover, until you obtain an Installment Agreement, your assets, accounts receivable, wages, and bank accounts could be in jeopardy.
Since government collection agents want “their” money back and they want it NOW, they frequently intimidate taxpayers into agreeing to pay monthly installments that are higher than the taxpayer can afford. This can cause a dilemma where the taxpayer is faced with a choice of making the installment payment or meeting his or her living expenses. It can also set the stage for default of the Installment Agreement. Default is often followed by enforcement such as bank levies, wage levies, accounts receivable levies, and, in serious cases, the seizure of assets.
If you are a business owner struggling with expenses, enforcement could cause the demise of the business that you have worked so hard to build. If you are an individual, enforcement could eliminate your ability to provide the basics for yourself and your family.
In addition to these ramifications, if an Installment Agreement is defaulted, the government will be less inclined to agree to another Installment Agreement in the future. Therefore, it is extremely important to get the Installment Agreement done properly on the first try.
Our staff has extensive experience in negotiating Installment Agreements and assisting taxpayers with the paperwork that is necessary for obtaining an Installment Agreement. We can assure you that we will NOT set you up for failure by agreeing to monthly payments that you cannot afford.
After we negotiate a manageable Installment Agreement on your behalf, we will stay by your side and protect you from default. We understand that unexpected expenses may “pop up” in the future and that there may be a month or two in which it is difficult or impossible to make your installment payment. Rather than defaulting your Installment Agreement and exacerbating your tax problem, simply give us a call before your payment is due. Chances are, we can negotiate an extension for your payment or even make arrangements for you to “skip a month” without having your Installment Agreement default.
For more information, refer to our article on Installment Agreements.