If you can pay your debt over time, an installment plan may be the right solution. IRS Section 6159 provides a statutory right to enter into an installment agreement with the IRS.
The most widely used method for paying an old IRS debt is the monthly installment agreement or IA. If you owe $25,000 or less, you should be able to get an installment plan for 60 months. If you owe less than $10,000, an installment agreement requires the full payment of the liability within 36 months. If you owe more than $25,000, you will need the assistance of the Law Office of Thomas P. Hogan to negotiate with the IRS to get an installment plan.
You must be current on this year's tax returns. If IRS computers show that you haven't filed all past due tax returns, you will not be eligible for an IA. Likewise, if you are self-employed, you must be current on your quarterly estimated tax payments for the current year. Finally, if you have employees, you must be current on payroll tax deposits and Form 941 filings to get an IA.
Partial Installment Agreement
The biggest drawback is that interest and penalties continue to accrue while you still own.
If you have leftovers cash after living expenses, you are in a position to negotiate a payment plan. However, if you have no leftover cash after living expenses, your best bet is either submitting an Offer in Compromise, or asking for a suspension of collection activities or filing for Chapter 7 bankruptcy. In either case, the Law Offices of Thomas P. Hogan is your best bet.
