Payment Plans
Small Dollar Payment Plan
I was looking for some information on IRS installment agreement and I found some very useful information on the website of Joe Mastriano CPA, here’s a interesting quote from his website at www.taxproblem.org:
You may easily be able to get up to 60 months to pay a liability if the principle plus any interest and penalties that are part of the original assessment is < $25,000 (notice I said original assessment). You can also buy this down below $25,000 by making an immediate payment. This can be tricky. If you say to the ACS person that you want to buy it down and they are not cooperative you will have to be very persistent. Here’s what you do. Go to the nearest IRS walk-in office and pay an amount that will bring the liability down below $25,000. Get a paid receipt. Then call ACS after you completed your 433a and 433b (if needed). Fax them the receipt if they want it. They can check their system the next day to verify it. Then show them that you can only pay the monthly amount you want to pay. It is a lot harder if you call up and say something like” hey, I was reading the collection manual on your Website and it says I can have a 60 month installment agreement, so give it to me”. Boy, will they “give it to you”.
If you need more information about IRS payment plan you should search our site.
A currently not collectable (CNC) payment plan installment agreement
If as a result of filling out the collection information forms, the IRS can’t satisfy the payment of the debt by the end of the statute of limitations on collections they may put you in a CNC status. This means they have considered any equity in assets, and your ability to make reasonable monthly payments that will extinguish the debt in a reasonable collection time frame, and have concluded that you really don’t have the ability to pay. I say take this status from them. Make sure it’s coded on the system. Then work toward resolving the liability. The liability is still accruing interest and penalties (interest only if a trust fund liability), and you will have to pay it later. Try to set yourself up for an acceptable offer in compromise to get rid of the liability. See the chapter on offers.
I love this guy’s website, all you need to know about taxes and the IRS is available freely on his website, and he also has a comment section where he provides quick tips and advice to his users. I needed to learn more about how to get an IRS installment agreement so I called his secretary and arranged a one hour paid consultancy so he can go over my situation and give me some advice.
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