Steps to set up an IRS Payment Plan or Offer In Compromise

Several steps are involved in working out any type of payment plan.  Let’s look at the procedure for an IRS payment problem.We will talk with you and look at the papers you have before trying to set up any plan.  We need to know how you see the situation and what ideas you have considered to work out solutions.We also want to know what you expect to happen in the next few years.

Note:  The records you have will be important!If they are complete and organized we can move forward much faster.

First, we will need to see all letters or notices from the IRS that you have.  We also will need to get copies of any missing ones that may be important.In order to get accurate details, we will likely need your authorization to get information from the IRS.

Second,we have to know exactly what is owed and for what years or periods.  This usually involves getting transcripts from the IRS records section.

Third, we need to verify whether any tax returns or payroll reports are unfiled.  No plan can be set up while the IRS is waiting for delinquent returns.  If there are missing returns, the approximate amount owed must be estimated. Work will need to begin on the missing returns.

Fourth, we will need to go over your income and financial condition.This will include verification of your income tax withholding and payments already made on the current tax year.Assets and debts will be reviewed and evaluated.

We can use the data from the government and you to determine what kinds of payment arrangements may be possible.  The collection division has specific rules to follow and try to follow those rules. We may well suggest changes in your financial situation to arrange a more favorable deal for you.  Possible choices will be discussed with you.  If more than one arrangement appears possible, we will explain them to you as clearly as possible.

The IRS wants the arrangement we propose for you to be one that works for you as well as the IRS.  They are responsible for collecting the tax that runs the country. Every failed plan just means that time and money is being lost for the government.

Your payment options may be simple or more complicated. Our job is to design and negotiate the best solution for you!