Payment plans by an IRS Lawyer
If you are unable to pay the entire debt at one go, then an IRS lawyer helps you to settle it by setting up a payment plan that meets your needs. If the IRS has burdened you with unreasonable payment plan, interests and penalties, levy on the wages, bank accounts or other assets. An IRS Lawyer comes in to rescue. To set up a payment plan that can accommodate with the current financial situation.
An offer or a compromise is between the tax payer and the government to pay the debt in full or settle it. The main aim of the government is to collect the debt at the earliest so that the charges are not incurred further and obtain what is reasonably collectible. If the IRS believes that the tax payer won’t be able to pay the entire debt ever, so they offer to take as much as the taxpayer can pay.
If there is a doubt of actual debt existing, then the government agrees for the compromise. If IRS or government believes that the tax payer has money or assets to pay off the debt, then the government does not agree for any compromise. This is a risky thing as it may cost the tax payer and his family dearly and may bring them on streets. If the compromise is accepted then the payment is done in three ways:
- Cash within the 90 days of approval.
- Short term deferred payment plan.
- Long term payment plan
For those who can pay their taxes in full, the interest and penalties make it difficult for the tax payer to pay in full. A good reason can be given to avoid penalties and interests like reasonable cause, correction of service errors, administrative waivers and statutory expectations.
If there is a reasonable cause then IRS will access the initial situations as to when the interest started accruing. Relief will be provided if IRS believes the reason is genuine and the tax payer was ready to pay the debt in full, but because of the penalties, the payments got delayed. The other reasons for abatement of interests and penalties are: Unable to obtain records, serious illness, and loss of a household provider, natural disaster, service error, incorrect advice from the IRS Lawyer or from the service. In such cases IRS will provide the refund and take off the interest charges.
When IRS fails to collect taxes from the tax payer then they attach wages and it is known as wage garnishment. IRS takes away the portion of your wages to cover up the debt. To get the wage garnishment, it can really affect your financial situation and make the situation stressful. The IRS Lawyer then contacts IRS to stop wage garnishment and plan out a payment plan for the tax payer.
Hire a good IRS Lawyer and make your life at ease and escape the penalties by planning the best plan for yourself.