An installment agreement is one way of paying the taxes that you owe. An IRS Installment agreement can be available to individuals and businesses. Installment agreements are based on financial information that is provided to the IRS. There are several different kinds of installment agreements available to taxpayers. An Installment Agreement may be based on the amount of taxes owed ($50,000 or less) or your current financial condition. The IRS uses forms 433-A, 433-F and 433-B to determine your financial condition and set the amount of your monthly payment. What information is provided and how your financial information is provided to the IRS is critical. Remember, the IRS agent’s job is to collect as much money from you in the shortest amount of time possible. Your lack of knowledge WILL be used against you.
Far too many taxpayers are placed into installment agreements that they simply cannot afford to pay. Before you agree to any payment plan with the IRS, a taxpayers with a tax debt should really consult with an experienced tax professional. Instead of making payments that may be impossible to keep, you may be eligible for Currently not Collectible status.
Before you agree to an IRS Installment Agreement, you may find out that you are eligible and qualified to settle with the IRS through an Offer in Compromise submission. You owe to yourself to find out what is available to you.
File Tax Returns to Replace Returns Created by the IRS – Substitute for Returns (SFR)
This can be the best solution for immediately lowering the amount of taxes the IRS says you owe. Even if the IRS has already filed a “Substitute for Return” for you (SFR), you still have the right to file your tax return through the audit reconsideration process.
As a “rule of thumb” when the tax professionals at Flat Fee Tax Service challenge the IRS created “Substitute for Return” and our team replaces these inflated returns with a real tax return, we have been able to cut the IRS tax debt in half.
When the IRS creates a tax debt by use of a Substitute for Return, the IRS is armed with an inflated tax debt and now has the power to enforce collection. Tax liens, a tax levy, IRS garnishment is sure to follow. Failure to file a tax return will waive your rights to settle your tax debt.
Filing your tax return may cause a significant reduction in the amount of tax debt you owe. But a taxpayer needs to be careful, sending your tax return to the wrong place or making mistakes on the tax return can cause significant delays and/or cause the IRS to reject your “new” tax return. It is important to understand the method and procedures for filing old tax returns to ensure that your tax return is properly processed and that you receive the credit you deserve.
IT IS ALWAYS BETTER TO USE AN EXPERIENCED TAX PROFESSIONAL
I am Dave Rosa. It is always my pleasure and duty to provide a thorough, comprehensive evaluation of your tax problems. Our conversation will take 20 to 30 minutes. Time well worth your while.