Is the thought of paying the IRS what you owe them too daunting to think about? We understand that their demands may be too much for you and your family to handle, which is why we work with them to set up a proper payment plan for you. There are so many possibilities that it can become confusing very quickly. We understand these terms and the conditions that go along with each type of settlement.
Depending on your situation, you may qualify for special programs such as an Offer in Compromise or an Abatement of Penalties. Let us help you; we can determine if you can make lower payments, or in especially hard times, qualify to become “currently not collectible”. This temporarily gives you an exception in the eyes of the IRS and keeps them from coming after you for payments.
The most common types of tax settlement options are:
Installment Agreement – You may qualify for a low-cost repayment option. This will lower the amount that you pay each month, but in turn will end up paying more interest and stretch your repayment over a much longer timeframe.
Partial Payment Installment Agreement – If you do not qualify for a normal low-cost installment agreement, then a Partial Payment Installment Agreement may be in your best interest. If the IRS determines that you cannot afford to pay back the entire amount owed, they will let you pay a portion of it and forgive the rest. However, you must make normal payments until they deem it is “paid in full”.
Penalty Abatement – If life hits you hard and you cannot afford to pay the penalties set by the IRS, you may qualify for Penalty Abatement. They will forgive all penalties and simply accept normal paid installments. This option can be used in conjunction with the other two listed.