WHAT IS AN INSTALLMENT AGREEMENT?
If you cannot pay the entire assessment in one payment and you do not qualify for an offer in compromise, an installment agreement gives you the convenience to pay your outstanding tax liability over a reasonable time period. Once we have set up an installment agreement for you, as long as you make your payments timely, the taxing agency will not levy on your bank account or garnish your wages. If the installment agreement is over a long period of time, it is possible for the taxing agency to amend the agreement if your financial circumstances change.
THE COMPLEXITIES OF AN INSTALLMENT AGREEMENT
The IRS or the state agencies will utilize their own formula to decide if you qualify for an installment agreement. Therefore, you should not try to negotiate with the IRS or state taxing agency yourself, as you are unaware of the rules of the IRS or the FTB in securing such an agreement.
It is in your best interest to hire a tax professional to negotiate an installment agreement on your behalf. Our tax professionals are very familiar with the allowances the taxing agencies use as well as when exceptions may be applicable. Our goal is to negotiate for you the lowest possible amount that the IRS or the state tax agency will accept.
If you are being audited by the Internal Revenue Service, Franchise Tax Board or any other state or local tax authority, or if you are facing collection issues, contact the tax attorneys at Dave Lee Rice, A Professional Law Corporation, immediately at (310) 517-8600.