Installment Agreement Archives

Avoid Late IRS Installment Agreements

The concept of “judicial activism” refers to situations where judges do more than simply interpret existing laws. They venture into creating new laws or policies through their rulings. This encroaches on the legislative power of Congress, which creates the laws, and the executive agencies, which create policies to implement the law. This type of discretion…

Court Says Tax Lien Does Not Have to Be Filed Prior to Entering Into an Installment Agreement

In Budish v. Commissioner, T.C. Memo. 2014-239, the U.S. Tax Court held that the IRS erred in insisting on a tax lien being filed before it would accept an installment agreement. This case serves as a reminder that a tax lien does not have to be filed if it creates a hardship that would make…

Increased Fees for IRS Tax Installment Agreements

Increased Fees For Irs Tax Installment Agreements

The IRS recently reviewed the government cost of processing IRS tax payment installment agreements, which has resulted in the IRS proposing to increase the costs for filing IRS installment agreements. The IRS tax payment installment agreement is one of the remedies of last resort for taxpayers who have outstanding tax liabilities. There are a number…

Deposits vs. Payments: How to Pay the IRS

Deposits Vs. Payments: A Distinction Taxpayers Must Understand Before Making Payments To The Irs

Paying taxes is an essential part of being a responsible citizen. The IRS has specific rules and procedures for taxpayers to follow when submitting their tax payments. However, many taxpayers may not be aware that there is a difference between making a payment and a deposit when paying the IRS. The two are not the…

IRS Can Force Business to Shut Down

There is something about the human condition where we expect reason to prevail. We expect that if given the opportunity to explain, reasonable parties who take contrary positions will agree. This is not always the case, and it is often not the case when it comes to the IRS. For example, many businesses that owe…

IRS Cannot Reject Payment Plan That is Too High

Irs Says Taxpayer’s Payments Were Too High

In the context of tax debt, the IRS offers taxpayers the option of submitting installment agreement requests to pay off their debts over time. However, the IRS also calculates a taxpayer’s “reasonable collection potential” to determine the amount that the taxpayer can reasonably pay toward their tax debt. If the IRS determines that the proposed…