Porter Law Office LLC recently helped secure an approved IRS installment agreement for a taxpayer. The installment agreement negotiations required extensive understanding of the non-streamlined installment agreement procedures, the collection information statement, and collection statute expiration date as the means to enter into the agreement.
An installment agreement is an arrangement by which the IRS allows you to pay your tax liabilities over time. Contact Columbus, Ohio tax lawyer Matthew R. Porter, Esq. LL.M. for a free evaluation of your eligibility to resolve your debt under an IRS installment agreement.
Minimum Monthly Payment Terms
In this case, the Taxpayer owed over $100,000. Thus, the agreement type was routine, or non-streamlined. A collection information statement (or “CIS”) was required in this case. The CIS is a financial statement detailing a taxpayer’s assets and liabilities, bank accounts, employment information, and future income prospects. The taxpayer’s CIS showed an ability to pay of around $4,000 per month.
The CIS net monthly income figure does not take into consideration certain non-discretionary, non IRS standard, expenses. For example, it would not allow for the expense of paying your child’s car payment. It would generally not allow for minimum payment on a non-government guaranteed student loan in your child’s name. As a result, you may have these expenses but the IRS will want you to pay a tax liability as though you did not.
Due to this fact, our office negotiated a lower monthly payment. We were able to reduce the IRS’s proposed amount by more than $2,000. The negotiated amount full paid the liability by the collection statute expiration date. This request was within the framework of the IRS’s processing procedures. Therefore, the IRS ultimately agreed and approved the agreement within two weeks.
IRS Installment Agreement
If you do not qualify for an offer in compromise, you may need to negotiate an installment agreement with the IRS. This typically occurs when you have assets and future income that can fully pay the tax liability within the IRS’s 10-year statute of limitations. The benefit of negotiating an installment agreement is that the IRS is prohibited from levying against your bank accounts or garnishing wages.
The installment agreements stops IRS collection efforts including the power of levy and seizure of property.
See Reg. 301.6331-4.
Contact an Experienced Ohio Tax Attorney
IRS Installment Agreement Representation | Columbus Tax Lawyer
Porter Law Office, LLC is a boutique law firm that assists taxpayers with resolving tax debts with the IRS. Columbus, Ohio tax attorney Matthew R. Porter, Esq. LL.M. assists taxpayers with securing installment agreements with the IRS. An IRS installment agreement is a valid collection alternative. If you have questions about whether your current tax liability and financial situation will qualify to enter into an installment agreement with the IRS, contact the experienced Columbus, Ohio tax lawyer at Porter Law Office, LLC today for a case evaluation.