Installment agreements Archives - Page 3 of 7 - Howard Levy is a Cincinnati tax attorney with the experience to find solutions to your IRS problems.

Fresh start with the IRS? Learn how it really works

By Howard S. Levy, Esq., Currently Not Collectible, Form 433A, Installment agreements, IRS Financial Statements, Offer in compromise, Trust fund recovery penalty

An offer in compromise can put IRS troubles behind you and bring a fresh start on your taxes. But the road to a fresh start with the IRS is not necessarily as simple as it may sound. The IRS has very strict criteria that they use to determine if a tax debt should be compromised. Before jumping in with a compromise, there is much you need to know about the IRS settlement process, including: - Whether you should even file an offer in compromise. For example, if the IRS has a limited time left to collect your debt (out of the 10 year period they are given by law), should you jump ... Read More

Internal Revenue Manual: IRS collection procedures at your fingertips

By Howard S. Levy, Esq., Installment agreements, IRS Seizures, Offer in compromise

You do not have to be in the dark about internal IRS collection and audit procedures. The IRS makes its playbook, the Internal Revenue Manual, available to the public. In fact, all you really wanted to know about the IRS can be found online in the IRM at the IRS' website. Sometimes, though, the IRS may not follow its own playbook, or even be aware of its own rules. This is rarely with bad intent; the Internal Revenue Manual contains a vast amount of procedures to follow - an IRS agent may realistically not know every one, or maybe details get lost in the everyday workflow. To get the ... Read More

IRS installment agreement vs. statute of limitations on collection: What’s the impact?

By Howard S. Levy, Esq., Installment agreements

A concern frequently voiced by my clients is whether entering into an installment agreement with the IRS automatically extends the time the IRS has to collect. The perception is that if you agree to an installment agreement with the IRS, you are in it forever. Quite simply, you aren't. IRS installment agreements have end dates. The end date is 10 years from when your IRS liability began. When does an IRS liability begin? The time the IRS has to collect begins when they place your debt officially on their books. This is called an assessment. Assessments typically occur in three ... Read More

I can’t make this month’s IRS installment payment – what should I do?

By Howard S. Levy, Esq., Automated Collection Service, Installment agreements

You negotiated a payment plan with the IRS, and they have been leaving you alone. As long as you make that payment, IRS letters and calls are on hold, and things are OK. But what if you have a sudden, unexpected expense. Or an unexpected reduction in income? What if you simply get to the point where you can't make the payment? You have options. 1. Call the IRS and ask for a breather. Believe it or not, the IRS is usually very accommodating if your situation is short-term. A call with a request to miss a month's payment should get an IRS "yes." Usually, for a one month ... Read More

IRS levying on your state tax refund while you are in an installment agreement?

By Howard S. Levy, Esq., Installment agreements, IRS levies and property seizures

I would like to share my response to a reader who was experiencing financial hardship because the IRS had levied his state income tax refund, and he needed the money to get his house out of foreclosure. As the reader correctly pointed out, the problem with the IRS levy was that it was made while he was in an installment agreement. One benefit of being in an payment agreement with the IRS is that the agreement stops the IRS from levying your property. The protection against levy while in an installment agreement is required by law: Internal Revenue Code Section 6331(k) states that the ... Read More