Your Public Defender against the IRS when you need tax debt relief . . .
Serving clients in New York, New Jersey and Connecticut
Harborside Financial Plaza
Jersey City, NJ 07311
What if you can't pay? That happens, of course. Are there any alternatives to hostile collection actions, such as bank account levy, wage garnishment and property seizures?
Well, Congress has authorized the IRS arrange for payment of taxes over time, over 60 months, to be specific.
This is an Installment Agreement.
You do not have an absolute right to an installment agreement.
You do not tell IRS how much you think you can pay each month. Uh, uh. IRS will tell you what you can pay, based upon a review of your household income and expenses, with significant limitations.
You may think that you need a certain level of expenses to maintain your lifestyle, including tuition for school, and vacation homes. IRS on the other hand, look for you to make some sacrifice, and publishes its National Standards for what expenses are allowable.
Getting the lowest possible monthly amount is an art. You will screw it up if you try this yourself. And you only get one crack at this.
There is a dreaded form for all this, of course. Form 433-A. The Collection Information Statement. Not only do you have to put down the information, you have to document your expenses: three month's of receipts.
This is a lot of hard work, detailed work. but ultimately, an Installment Agreement will stop collection activity and allow you to get back to normal, without living in fear of levy, garnishment and seizure.
You cannot do this yourself, and the Taxpayer Advocate likewise can't get you the lowest possible monthly payment.
I can do this for you.
This is a terrific option, if you qualify. You can avoid filling out the financial disclosure statements, and simply pay off your debt over 60 months. That's it.
If you owe less than $25,000, then IRS will set up this Streamlined Agreement in under an hour. You just have to be able to pay the balance in less than 60 months, or sooner. But you can't do it if the ten year period for collections will arrive soon.
What does this mean? That IRS will not play Mr. Nice Guy and give you months to pay off the debt, if the statute of limitations is about to run out. That is unfair to other taxpayers.
Now, once you have the installment agreement in place, all collection activity stops.
- You don't have to worry about your bank account being seized, or your pay being garnished.
But you better NOT miss a payment, or IRS will terminate the Agreement and move aggresively to collect taxes. That's a fact.
Federal Tax Lien
IRS will always put a tax lien on your property as a condition of the installment agreement. Otherwise, you might just sell your house and forget to pay IRS, which has been nice enought to let you pay over 60 months.
With a Streamlined Installment Agreement, you may get the lien removed. I can help you with this. You've got to make your case properly and you've only got once shot at this.
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