IRS Increases User Fee For Establishment Of Payment Plan
Effective January 1, 2014, the user fee charged by IRS to establish a payment plan has been increased from $105.00 to $120.00.
If you cannot pay all that you owe now and do not qualify for an offer in compromise, an IRS installment agreement may be your next best option. Payment Agreements allow you to pay IRS debt in full in smaller, more manageable amounts, usually in equal monthly payments. The amount of your installment payment will be based on the amount you owe and your ability to pay that amount within the time available to the IRS to collect tax debt from you. However, be aware that because you are financing your liability with IRS, interest and penalties will continue to accrue.
The IRS has different types of plan available and some even allow the IRS to refrain from filing a Federal Tax Lien which if filed would adversely effect your credit. Additionally, the IRS cannot levy against your property (1) while your request for a Payment Agreement is under consideration, (2) while your agreement is in effect, (3) for 30 days after your request for an agreement has been rejected, or (4) for any period while an appeal of the rejection is being evaluated by the IRS.
Most people do not have the necessary skills or knowledge of the IRS collection process to propose a payment plan that can meet IRS standards and be within a person’s budget.
The tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. have extensive experience with getting reasonable payment plans processed by the IRS for the lowest possible monthly payment and secure a final acceptance with IRS.