Many taxpayers often incur tax debts that they just can’t pay all at once. This can be the result of many factors such as not paying your quarterly taxes throughout the year resulting in one lump payment that may not be available, or possibly changes in income such as losing a job or business downturn.
Whatever the reason, the problem needs to be addressed immediately before collection action is faced such as levies, liens or a wage garnishment.
Our firm has helped clients for years in the Chico, Paradise, and Oroville area establish affordable tax installment agreements which allowed them a way to pay off old taxes but at the same time allowed enough cash flow to pay their current tax obligations.
The real goal of the IRS and tax agencies is not so much to have you pay off the old debt, but more importantly get you into “compliance” and pay current and future taxes. They will work with you on the old stuff as long as you remain “compliant” going forward.
Tax Installment Agreements work great for those with the ability to pay or even those who can’t pay anything currently and don’t qualify for doing an Offer-in-Compromise for some reason, such as having too much equity in their home.
The process can be confusing and intimidating. Clients who go this route alone often set up a payment arrangement that is unaffordable without really thinking it through or by being pressured by an abusive agent. We have extensive experience dealing with the IRS and can help you navigate through this process helping to find a plan that works best for you.