IRS Payment Plan Accepted!

We have a client who hired us several years ago with a smaller IRS tax issue totaling $20,000. We cleaned up the situation, put an IRS payment plan in place, and eventually moved on. He was successful in paying off his debt through the IRS payment plan and had a great business plan in place. However, about a year ago, something went drastically wrong.

Our client called us again this past summer and realized there was an outstanding tax bill of over $260,000 in 941 payroll taxes owed. He was concerned he wouldn’t qualify for an IRS payment plan. He wasn’t sure how the debt accrued to such a large amount and was disappointed he didn’t take a more hands on approach to his payroll obligation. He hired two bookkeepers over the past 3 years who weren’t paying the taxes timely, nor did they have a conversation with the client about the non-payment of the tax issue. Matter of fact our client was not aware there was a tax issue until the State of Colorado showed up at his front door with their hand out. He then started to investigate what was happening as well as what may have caused such a large tax issue. He also immediately hired a payroll service to be sure he stayed compliant from this point forward. (A must for any resolution to be negotiated). He wanted to secure another IRS payment plan as soon as possible.

Regardless of how the tax debt was accrued we take the same simple approach to dealing with tax debts and setting up an IRS payment plan:

  • We find out how much is owed, and what returns might be missing
  • We order transcripts to find out if the debt is accurate or not
  • We review the taxpayers financial history, as well as current financial status
  • We select the most appropriate resolution allowed by law (to start we seek to set up an IRS payment plan)

In this case the taxpayer showed he could afford to repay the debt on an IRS payment plan in the amount of $1,600 monthly. We forwarded the financial form to the IRS Revenue Officer along with a proposal for an IRS payment plan and began working toward negotiating the agreement. After a few phone calls, and some additional items being sent to the IRS Revenue Officer, we were successful in setting up a realistic and affordable IRS payment plan on behalf of our client.

If you or someone you know needs assistance in setting up an affordable IRS payment plan please call us directly to discuss options at 720-398-6088.