Our clients must approve the monthly payment amount before we agree to anything with the IRS. The best time to handle an IRS payment arrangement is BEFORE the IRS levies your bank account or garnishes your wages.
If you find yourself behind in tax liabilities, you can always borrow at the IRS Bank. The IRS has over One Hundred Billion dollars owed to them by individual and business taxpayers.
When you find that you can’t pay what you owe, the IRS will work out some type of payment arrangements. The IRS guidelines for what expenses they will allow each month are very stringent. But the bottom line is that you only pay the IRS what you can afford each month. For example: A taxpayer who owes the IRS $43,000 may only be paying $50 per month and a taxpayer who owes $16,000 may be paying $800 per month. How much you owe does not matter. The payment arrangements are based on how much you can pay. You must understand what the IRS guidelines allow BEFORE any contract is made with the IRS regarding monthly payments.
We review a taxpayer’s financial condition and can usually suggest the amount that the IRS will accept for a monthly payment, before we contact the IRS.