Tax Payment Agreements

Negotiating an Installment Payment

CAUTION! Read this first: Attempting to negotiate an installment plan for your owed taxes can be very complicated and dangerous. Similar to an "Offer in Compromise", the Internal Revenue Service may require you to supply much detailed financial information and the corroborating documents. They will then reach a determination of what they feel you must pay in interest, penalties and taxes.

Jozwiak Law has successfully negotiated Installment Payment Agreements with the Internal Revenue Service for many of our delinquent clients who could not afford to pay all that was determined they owed all at one time. Of further benefit to you in an installment agreement is the provision that once an installment payment agreement has been finalized, all enforced collection activity will come to a halt, as long as you continue to follow through with your payment schedule as outlined. In some cases, we have actually been able to achieve a reduction of interest as part of the Installment Agreement.

While supplying the Internal Revenue Service with only the minimal amount of legally required information about you, we are in many cases able to negotiate terms that will then require a minimum amount to be paid by you. We do encourage our clients on the installment program to make extra payments whenever possible, in order to quickly pay off the balance.

Often, the Internal Revenue Service will disallow rent or mortgage payments higher then the amounts allowed within their guidelines for computing how much you can afford to pay, and other expenses like credit card payments may also fall into this category. You could then be saddled with a payment amount substantially higher than you actually can afford to pay.

Hardship Deferrals

In the cases of clients who owe taxes, but for reasons of extreme hardship cannot make even the smallest of payments, and who do not fit the criteria of the other programs that are offered, we can hopefully negotiate a "Hardship Deferral" on their behalf. Once a "Hardship Deferral" agreement is reached, a client will not be expected to make any payments and all collection activity that may have been enforced will come to an end.

However, the IRS will continue to monitor the situation by reviewing the account once or twice a year. In some cases the statute of limitations may run out and the taxes are no longer allowed to be collected.

Note: For all of the same reasons mentioned above that are relative to applying for installment payments, we advise extreme caution when applying for this type of resolution to problems on your own. If it is determined that you really cannot make payments at this time, you may be asked to sign an agreement that will extend the statute of limitations for many years to come.

Certain monthly expenses that you already have could be disallowed as above. It is therefore important to only provide what is absolutely required by law to the investigating authority for the same reasons previously mentioned.

If you feel that any of this applies to you or your situation, do not hesitate to call us for an appointment.