Commercial IRS Collection Attorneys

IRS Payment Plans are meant to provide a win (and sort of) win scenario for Uncle Sam and the Taxpayer. The IRS will get to collect the taxes they want, and you, the taxpayer, won’t have to pay them all at once. Of course, a better scenario for you might emerge from a tax appeal or an offer in compromise, which could seriously reduce the burden of your back taxes, penalties, fines, and fees.

But even if the IRS agrees to an offer in compromise, they will still require you to agree to some sort of payment plan, whether that’s a lump sum payment of 20% upfront and then five additional payments over five months, or a 6-24 month payment plan. And if the IRS does not agree to an offer in compromise, you can still set up a payment plan with them. IRS payment plans range from 120 days to as long as six years, depending on the financial resources of the taxpayer or business (for example, their assets minus their business or living expenses).

You can fill out IRS Form 9465, the Installment Agreement Request, yourself, even online—especially if you personally owe the IRS $50,000 or less, or your business owes $25,000 or less. You can also call the IRS directly to discuss other options.

It’s easy to see the option for a payment plan as the easy and equitable way out without considering your other options. But before filing out this form or calling the IRS, you should consider whether or not there are any other alternatives to paying the IRS what they want, over time, which certainly means paying interest as well. Discussing your tax burden or back taxes or collections notice with a tax lawyer should be your first step, since they can inform you of other options you might have at your disposal—options that can help reduce they amount of taxes you owe, for example.