Warding Off a Tax Levy with a Payment Plan
If you owe more in taxes than you can afford, you have several options to avoid going into default and incurring a tax lien or levy. One way to avoid protracted tax levy and lien issues with an IRS lawyer is to enter into a payment plan. Working with the Law Offices Of Jeffrey B. Kahn, P.C. is one of the most effective ways to negotiate a payment plan with the IRS that is right for you.
Depending on how much you owe will drive how much verification information/documents that IRS requires to consider a payment plan. If you owe more than $50,000 in taxes, the IRS will require full verification of your financial information. Likewise, if you are self-employed, you can expect the IRS to look at your financial information. No matter how much you owe, the IRS will be looking to set up a payment plan that will erase your debt within 60 or 72 months. If you owe more than you can pay within that timeframe, you’ll want to hire in tax lawyer in Fairfield or elsewhere to work on an Offer of Compromise to potentially reduce your debt.
You have a strong chance of having your payment plan accepted if you owe less than $10,000 and meet certain requirements including:
- Having filed taxes on time for the previous five years while paying in full and not having requested an installation agreement.
- Showing the IRS that you are unable to pay your tax bill in full.
- Agreeing to pay your debt within three years.
Working with a tax attorney lawyer is the best way to assure that you get a payment plan that works for your situation and prevents IRS collection action to be taken against you.