ARRANGING AN IRS PAYMENT PLAN

The first requirement which needs to be fulfilled before the IRS will allow for a Payment Plan on a tax debt, is that all the taxpayer's tax returns MUST be filed. This is the first step towards IRS Compliance, and no settlement can be arranged without having done so. Once all returns are filed, the taxpayer must then calculate the amount of the monthly payment to offer the IRS. This is the most difficult and important part of the process.

The trick here is to determine what monthly amount will be high enough to be considered acceptable by the IRS, but low enough that it can be maintained by the taxpayer over the long run without creating an economic hardship. There are several factors that make this calculation difficult. For an effective Payment Plan request, a taxpayer will need to analyze their financial situation, taking all assets, income and allowable expenses into consideration in order to come to the best monthly amount. For debts of $25,000 or greater, a Financial Disclosure statement is usually required. 

Of course, another factor which must be dealt with is that of good-old-fashioned IRS intimidation. An IRS Agent's job is to collect money from taxpayers, and in their zeal to do so, they often strong-arm the tax debtor into a Payment Plan that the person can't really afford, creating the likelihood of default some time in the future. Simply giving in to their immediate demands will rarely settle a tax debt.

#1 Tax Relief will help you set up a livable IRS Payment Plan by thoroughly analyzing your situation and making sure that all of your relevant expenses and circumstances are taken into account by the IRS.  If you're already on an IRS Payment Plan but are having a hard time keeping up, then you might want to consider our services to help you adjust the terms of your repayment agreement.  We will determine the proper monthly payment amount that will get you out of debt in a timely fashion without jeopardizing your financial well-being.