If you cannot pay the total tax you owe the IRS, one option available in many cases is the Installment Agreement. If the amount you owe is $25,000 or less in income tax, in most cases we can negotiate a five-year installment agreement with the IRS without having to furnish a complete financial statement. However, if you owe more than $25,000 in income tax, the IRS will require a complete financial statement with all backup documentation. This financial statement is very comprehensive and lists all of your assets, liabilities, income and expenses. You will be required to produce documentation for each item listed as well as provide copies of your bank statements.
If you owe less than $25,000 in payroll tax, we can negotiate a 24-month installment agreement if you are current and remain current. This can also be negotiated without a financial statement. If you owe more that $25,000 in payroll taxes, you will be required to furnish a complete financial statement.
WE DO RECOMMEND YOU PREPARE THIS FINANCIAL STATEMENT. It should be prepared by an experienced professional who deals with the IRS on a consistent basis.
The IRS employees you would talk to have been trained to pick and choose the amounts they list on your financial statement. Their job is to produce a financial statement that will show a higher payment than you can make or wish to pay. In the majority of cases where a taxpayer or inexperienced practitioner furnishes financial information to the IRS, the taxpayer will end up with a higher payment and one that, in all likelihood, they will default on.
We have completed thousands of financial statements for our clients using our tried and true methods we have developed over the last 27 years. We are continually monitoring new changes instituted by the IRS on the completion of financial statements. We know what is allowed and what is not. We can maximize deductible expenses for our clients resulting in the lowest payment allowed by law.
Do not agree to an installment agreement you know you cannot keep!
Call Us Now at Toll Free 877-829-1400 and let us tell you what we can do for you.