After meeting with your tax preparer it seems that you are going to owe more taxes than you can afford to pay once you file. Like many people you filed your tax returns and immediately begun receiving automatic tax notices - all show additional penalty and interest -- growing with each notice.
Or even worse after your tax return was prepared and you realized that you could not pay the taxes owed you elected to not file the tax return - hoping to buy additional time to pay your taxes.
Unfortunately this places you in company with a lot of people who dread going to the mail box everyday wishing that another IRS notices is not waiting for them.
If you find yourself in the this state of "mail box blues", you will be happy to know that it doesn't have to be this way and that there is something that you can do to escape the mail box blues and gain piece of mind.
Pay in Full Installment Agreement – This is an agreement with the IRS to pay all outstanding taxes due by making monthly payments. Payment amounts are generally determined by a taxpayer’s ability to pay.
Partial Payment Installment Agreement – This is an agreement with the IRS to accept a partial payment for an outstanding tax liability. The amount is paid in monthly installments similar to a traditional Installment Agreement except that there is a reduction in the total amount owed.
Acceptance of a Partial Payment Installment Agreement is based on a number of criteria including the taxpayer’s history of compliance together with their current income and available assets.
The criteria can be different based on many factors including the amount that you owe.