Plus, get expert articles and updates that contain valuable info for tax pros sent straight to your inbox. Sign up below. Email: support irssolutions. IRS Solutions vs. By Practice Size. Guidance for Tax Pros: Installment Agreement vs.
Understanding Available Options Oftentimes, clients will be distressed when they come to you for help with back taxes.
Have the client sign an engagement letter and secure a retainer payment, as this initial opinion is why the client is coming to you. Contact the IRS for access to their records. Installment Agreements Entering into an Installment Agreement with the IRS allows your client to pay off their tax debt with monthly payments over an extended period of time. These both can be done online. Your completed offer package will include:. If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
See your application package for details. Explains the actions IRS may take to recover taxes owed. Home Pay Offer in Compromise. Several applications are turned down because many tax relief agencies send applications even if they know they have zero chance of being accepted.
The IRS might expect you to liquidate your assets to come close to the amount that you owe. They can also file a federal tax lien against your property while the status of your Offer in Compromise is still pending. If you already have liens, it might not be an issue. It also is not common but can be a possibility. The benefits of Installment Agreements usually occur where the disadvantages of Offer in Compromise end. The first advantage of an Installment Agreement is, typically, not having to liquidate your assets.
Additionally, the monthly installments in this plan can be extremely low. The total amount you end up paying can even be lower than what you currently owe, as debt that ages more than ten years become uncollectible. You can review the dates for the Collection Statute Expiration. Another advantage of an Installment Agreement is the acceptance rate.
Just keep in mind that you have to stay current on taxes and filing during the OIC. Fill out a contact form on our Contact Page or call us at In-person consultations are also available in Las Vegas, Nevada. If you owe less than that, see our tax help guide for information on resolving your tax debt. Save my name, email, and website in this browser for the next time I comment.
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