Page 45 - Escape Your IRS Nightmare Flip Book

This means the IRS has ten years to try to collect the money from you, seize your assets, take the money

from your bank account, and garnish your wages. We often find that all of these types of collections
actions likely become increasingly aggressive the closer your statute of limitation comes to running out.

To set up an installment agreement with the IRS the first step will be to talk to them and find out when
your statute of limitation is going to expire. This will give you an idea if you have ten years to pay off

the total amount of money due or less time.

Once you know how long your statute of limitations is going to run for, you need to determine how
much it will cost per month to pay off the balance in full.

This would be a very straight-forward installment agreement. Full paying the amount due plus
penalties and interest before the statute of limitations ends.

If you are unable to do this, you may be able to negotiate with the IRS to accept a lower monthly
payment if you are able to prove the burden it would create on you or your household if you were
forced to pay back the total amount of taxes due.

The IRS may accept a lower monthly payment, but in exchange they may ask you to sell some of your

assets and pay a lump sum over to them to reduce the total balance owed.

Another option is to provide the IRS with a full financial analysis of your entire household income,

expenses, savings, and assets. If their evaluation determines that you are unable to pay the total taxes
due, they may agree to a reduced monthly payment that does not pay off the taxes due within the

statute of limitations, but also does not require you to sell any assets.

Finally, if you owe under $50,000 in principle tax, the IRS will typically agree to allow you to pay the

balance owed over 60 months if you have more than 60 months remaining on your statute of
limitations without making you disclose your entire financial history or current income to the IRS.
This is a good option for people who know that they can pay the IRS more than they want to disclose.

To summarize, the 3 most common types of installment agreements negotiated with the IRS are
agreements that:

1. Will pay off the total amount you owe before your statute of limitations expires.
2. Will pay less than the total amount you owe because of the financial hardship you are in.

3. Will pay off your principle tax in sixty months without disclosing your ability to pay the IRS.

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