The IRS is a giant debt collection machine that has access to a number of legal collection methods including but not limited to:
- Levy/garnishment of wages and bank accounts
- Interception of funds owed to the taxpayer
- Seizure of assets
- Recording of liens
- Withholding of tax refund
Fortunately, the law provides the taxpayer certain tools to control the IRS\’ collection activity. The most common tool is the installment agreement.
The taxpayer can propose a payment plan in lieu of collection activity. In order to do so, the taxpayer must fulfill a number of requirements including the filing all required returns, and providing proof of income, budget, and assets.
Many installment payment arrangements result in a partial payment of the total tax owed before the time to collect the debt legally allotted to the IRS has expired. This solution is often called a partial pay installment agreement. Many of our clients qualify for a form of partial pay called non collectible status as well. This means that the IRS will agree to simply stop the collection process until the taxpayer\’s situation improves.
If you are facing IRS collection activity, the Gilbert tax attorneys at Anderson Tax Law can help you determine the best payment plan possible under the law, and can help you plan and negotiate a full pay payment plan, a partial pay payment plan or non collectible status with the IRS. Every dollar reduction in the amount of the payment plan could result in thousands of dollars saved over the life of the plan. Experienced counsel is necessary to get the best overall result.
If you have serious tax debt, call to discuss your situation with us for free by phone.