If you cannot pay your taxes in full, you may request an installment agreement or an offer in compromise. An installment agreement is simply a payment plan that allows you to pay off the full amount you owe in monthly installments.
The Internal Revenue Service (IRS) will consider a payment plan as long as you have filed all required tax returns and you take the necessary steps to avoid accruing additional tax debts. In other words, you may be asked to increase your withholdings or estimated tax payments.
If you cannot afford to make monthly payments to the IRS, you may qualify to be placed in what is known as “currently not collectible” status. The IRS will delay taking action while you rebuild a financial foundation.
You may make monthly tax payments online, establish direct debit, payroll deduction or mail in a check or money order.
Once an individual or business enters into an installment agreement, the IRS may not levy, seize or garnish any assets or income if the individual or business makes all payments, files all tax returns and pays all taxes on a timely basis.
You Have The Right To Appeal
If you feel a tax due statement is incorrect, you have the right to appeal. You may request that a tax lawyer represent you in this process.
Cranston attorney Michael T Napolitano advocates aggressively on behalf of individuals and businesses in tax disputes with the IRS. Among other things, Mr. Napolitano assists clients in appealing actions taken by the IRS such as filing a lien or placing a levy on wages or a bank account.
We can help determine if a payment plan is the best option for you or if there are additional steps you can take to minimize the amount of taxes you owe. Call 401-464-9516 or email us to schedule a free consultation.