Our goal at Boxelder Consulting is to find the resolution strategies that provide the best results for you in the shortest amount of time. Our team of licensed professionals can help identify which Installment Agreement is most financially advantageous after first determining whether or not you’re a good candidate for this type of tax resolution.
A Quick Definition
If you’re unable to pay your tax debt in full, the IRS may agree to a payment plan that lets you pay the debt off in chunks. This type of resolution is known as an Installment Agreement and allows taxpayers to pay down a debt over a specified amount of time.
Different Types of Installment Plans
There are several types of installment agreements, and each plan has different requirements and benefits. For example, if your liability is lower than $50,000 you may qualify for a Fresh Start Installment Agreement. This plan provides the taxpayer with guaranteed protection from future liens and does not require the filing of Form 433-A (a detailed financial statement). Alternatively, a Partial Pay Installment Agreement (PPIA) may be one of the most financially generous resolutions because the IRS only has a limited amount of time to collect your money – a PPIA does, however, require a detailed financial statement. The key takeaway in regards to the PPIA is that the Statute of Limitations – also known as the Collection Statute Expiration Date (CSED) – associated with your liability will expire before the full amount is paid back. Qualifying for the PPIA can therefore be quite complex, given that the IRS is willing to write off such a big chunk of the liability. Contact a licensed Boxelder Consulting professional for more details if you think you might qualify for a Partial Pay Installment Agreement.
Be Prepared for a Long-Term Commitment
Regardless of the Installment Agreement type, each requires a long-term commitment from the taxpayer along with numerous hours of preparation, negotiation, and monitoring. Some of the preparatory actions needed to be done prior to resolution include (but are not limited to): filing all past returns, a current status with estimated tax payments, and completion of financial statements (433-A), so the IRS can calculate your ability to pay. It’s important to note that your chances of approval for an Installment Agreement dramatically increase if you take these preliminary steps seriously.
The Art of Negotiation
Once the paperwork is in place, you’ll transition into negotiations where the devil truly lies in the details. Since talking to the IRS can be intimidating, Boxelder’s licensed, experienced professionals will be able to intelligently identify and argue the difference between allowable and dis-allowable expenses directly with the IRS on your behalf. Ultimately, the goal during the negotiation phase is to secure an affordable agreement that puts an emphasis on staying current.
Getting professional help at the beginning stages of the debt resolution process can save you a significant amount of time and money. In this industry, it’s common for taxpayers to get lost down a rabbit hole chasing the “silver bullet” that will quickly wipe their tax debt clean. Unfortunately, there is no easy button when it comes to resolving tax debt and your options depend solely on your financial situation – so what works for one, may not work for another.
Our goal at Boxelder Consulting is to find the resolution strategies that provide the best results for you in the shortest amount of time. Our team of licensed professionals can help identify which installment agreement is most financially advantageous after first determining whether or not you’re a good candidate for this type of tax resolution.