- Where in relation to the Statute of Limitations is your tax liability?
- Can your tax debt be reduced by amending your tax returns?
- Can the Penalties and Interest that the IRS has added to your back tax debt be eliminated due to "reasonable cause?"
- Are you qualified and eligible for an IRS settlement through the Offer in Compromise program?
- Is your financial condition such that you should be declared Currently not Collectible?
- How much money do you have left after your allowable expenses are factored in?
- for an IRS settlement of your back tax debt through the Offer In Compromise program, an elimination of the penalties and interest through a Penalty Abatement, you may be declared Currently not Collectible, bankruptcy and so on.
As mentioned previously, should you owe the iRS more than $25,000 you will be required to complete a an IRS Form 433-F as well as provide 3 months of pay stubs, 3 months of bank statements and other financial material.
Types of IRS Installment Agreements
When setting up an "everyday" (common) IRS installment agreement like a Guaranteed or Streamlined installment agreement you will also have to pay a one time fee that is paid with the first monthly payment. The fees are the following:
- $52 for a new installment agreement that is direct debt (deducted directly from your bank account). This, in most cases, will prevent a Federal tax lien from being filed or after a few payments lead to the withdrawal of one. The drawback is this: The IRS has your banking information and can potentially levy your bank account if you default on the Installment Agreement.