If you have a tax liability and cannot pay the entire amount at once, you have the right to pay the liability in monthly installments based on your ability to pay. When the IRS sends a notice of your tax liability to you, if you do not respond to the first notice or subsequent IRS notices, the IRS will consider your account to be delinquent. Tax liabilities that the IRS considers to be delinquent are generally turned over to the Automated Collection System (ACS) or to the Collection field function. A Utah tax attorney can negotiate an IRS installment agreement on your behalf to obtain an affordable payment plan taking into account your standard of living.
ACS is a network of call centers and agents across the nation that you can call and that can access your tax account. They can establish installment agreements for taxpayers. A revenue officer, or RO, is a local IRS collections agent who is assigned to work with the taxpayer to obtain a collection strategy. The IRS has power to levy assets and bank accounts, to assert liens, and to summons financial documentation from the taxpayer to collect assets from the taxpayer to satisfy the liability.
If I Have an IRS Tax Liability, What are my Options?
There are a number of payment solutions that the taxpayer can utilize to resolve their tax liability and work out a solution that works best for the taxpayer:
- Extension of time to pay your tax liability — You may be eligible for an extension of time to make a payment to the IRS. This strategy can be beneficial for a variety of reasons.
- Delaying Collection (currently non-collectible status or CNC) — If the IRS determines that you are unable to pay, it may delay collection until the taxpayer’s financial condition improves. This can be a welcome reprieve. The IRS will monitor the taxpayer’s income from time to time to determine if taxpayer still qualifies. To qualify for CNC, the taxpayer generally must establish that he or she does not have the ability to make any payments.
- Offer in Compromise — You may be able to settle your tax liability for less than the amount you owe by submitting an Offer in Compromise (OIC). You will need to demonstrate that the IRS’s reasonable collectible potential is lower than your total tax liability. The reasonable collection potential is based on your monthly net income and the equity in your assets. If you have questions about an offer in compromise, call the Utah tax attorneys at Tax Defense Counsel today for a free consultation. Also, please read more on our website about IRS offers in compromise.
Can I Appeal an Action by A Revenue Officer?
If you disagree with an action by an IRS Revenue Officer, you may file a Collection Due Process appeal or a Collection Action Appeal. The IRS Restructuring and Reform Act of 1998 (RRA 98) created Collection Due Process (CDP) hearings to provide taxpayers with an independent review by the IRS Office of Appeals (Appeals) of the decision to file a Notice of Federal Tax Lien (NFTL) or the IRS’s proposal to undertake a levy action. A CAP appeal allows a taxpayer to appeal a wide variety of actions taken by a Revenue Officer.
Contact Tax Defense Counsel for IRS Installment Agreement Help
If you have a tax liability and need fast and effective advocacy, call a tax attorney for a free consultation. We have a wealth of experience in negotiating with the IRS and are skilled in tax procedure to protect and secure your business and livelihood.Free Consultation