Paying Off Your Tax Debt Under Installment Agreements
If you owe a balance to the IRS or Franchise Tax Board based upon a filed return or following an audit assessment, you may find yourself unable to pay off the amount owed all at once. An installment agreement, which gives you the ability to pay off your tax debt over the course of time, can be used to make payments more manageable and avoid having to deal with a revenue officer who can file levies, wage garnishments, etc.
However, installment agreements are subject to a complex set of regulations. There are many different rules that determine whether or not you qualify for an installment agreement. For example, those who owe less than $25,000 (tax, interest and penalties combined) are often eligible for an installment agreement, while those who owe more than $25,000 may still qualify but must provide additional evidence and documentation to the IRS. Additionally, there are specific rules tied to interest and penalties that can accrue during the time you are making installment payments.
Do Not Set Up An Installment Agreement Without Consulting A Tax Attorney
During this difficult time, you should not have to delve into unfamiliar IRS regulations and find answers to your installment agreement questions on your own. Choosing to do so can inadvertently lock you into an unfavorable solution that ultimately does more harm than good. Further, should you decide to submit an offer in compromise, you are required to make the installment agreement payments while the offer is pending.
At the Law Offices of Robert T. Leonard, we provide you with the honest advice and sophisticated legal representation that you need to address your tax situation as efficiently as possible. Our clients work directly with firm founder Rob Leonard. As a lawyer and a CPA, Mr. Leonard is able to analyze the financial and legal implications of your circumstances, and provide you with custom-tailored advice. His advice is designed to not only accomplish your financial goals, but also give you the peace of mind that comes from knowing an accomplished tax attorney is protecting your interests at all times.
Understand All Of Your Options
Setting up an installment agreement is just one of the options available to you when the IRS attempts to collect additional tax from you. We can help you understand whether an installment agreement or some other tax relief tool is best for your specific situation.
Get A Free Attorney Consultation
Call the Law Offices of Robert T. Leonard at 818-485-2115 to arrange a free consultation. You may also contact us online. Based in Woodland Hills, we serve clients located in Los Angeles and the San Fernando Valley, as well as throughout California and in other parts of the nation.