Atlanta CPA Firm on Tax Installment Plans & Penalty Abatement... The IRS/Tax Representation Series

Atlanta CPA Firm on Tax Installment Plans & Penalty Abatement... The IRS/Tax Representation Series

Providing Atlanta With Bookkeeping, Accounting Needs & Financial Statements for Decades
This is an article of the IRS & Tax Representation Series. Tax Representation is not one where you can just "settle for pennies on the dollar." There is not a magic panacea or magic pill that one can take to just make their tax problem go away. Below is a sample of a recent inquiry received from a client:

Dear Mr. Dillard, I found your website while searching for CPAs who specialize in tax help and who offer a free consultation. I then found your advertisement. I appreciate your willingness to help people, so you seem to "fit the bill," as I am looking for someone trustworthy. I have a tax problem and I need your help.

A couple years ago I negotiated a payment plan with the IRS and pays about $450 a month to them. This hardly makes a dent at all. We are not interested in an Offer of Compromise, but would like to just pay off what he owes in a lump sum (preferably at lower than what he owes). Is it possible for him to renegotiate what he owes when already in a payment plan? And thus pay a lower lump sum since it is a lump sum (and a bird in the hand)? Do I need a third-party to help him renegotiate?

Also, is it possible to apply for "retroactive" abatement." Obviously, we'd like to pay as little as possible. Can you help? Thanks,

Below is my response:

While addressing unfiled tax returns and to file back taxes, frequently the options look bleak, as often they are. However there is good news for those who are desirous to look "outside the box" in looking to solve your IRS tax problems. Knowing the ins and outs of varying programs will do much to help you know what is in your best interest. After you have filed you back taxes and got all of your returns filed with the IRS it is then time to turn your attention toward the successful payment of your open IRS obligations.
IRS Installment plans are essentially long range, but are frequently the most convenient way to solve an IRS tax bill short term. However this option is frequently the worst option as interest and penalties continue to be assessed thus ensuring that you continue to owe even more additional monies rather than less. Form 9465 is used by taxpayers with the IRS to make an Installment Agreement Request to set up a monthly payment plan. If at all possible it is recommended that before you set up an installment plan, you look to other options available such as a loan from a bank.
Frequently it is prudent to paid the full amount of the tax and interest in full while asking that the IRS abate any assessed penalties is often a economic and viable business decision to consider. By paying the tax and interest in full, the IRS will often consider/look to work with taxpayers to resolve past back due taxes and penalty abatement.

How to Avoid an IRS Audit for Atlanta Taxpayers
Discover simple steps that you can do to help prevent an IRS audit. Though the tax code is at times very difficult to understand and comply, these basic simple steps will help you avoid an IRS audit. See http://www.hiscpa.com/avoiding-audits.html

Solving IRS Tax Problems: Submitting an Georgia Offer in Compromise
When all else fails and if you qualify, the IRS and Georgia both have a program which will enable you to work to solve the severest tax problems. Visit http://www.hiscpa.com/offer-in-compromise.html

Utilizing IRS Installment Plans for Metro Atlanta Taxpayers to Pay Your Past Due Taxes
The IRS has long been in the business of helping taxpayers get back into the system to ensure that taxpayers are able to pay their taxes over time. For those who do not qualify for an Offer in Compromise or to pay the taxes and interest in full, while seeking penalty abatement, an Installment Plan is a prudent and wise choice and alternative to get your past taxes due paid and current. See http://www.hiscpa.com/installment-plans.html

Contact HIS CPA PC (A Christian Atlanta CPA Firm) today. To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html  

John Dillard is an Christian Speaker/Author and an Atlanta CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/  or call John Dillard CPA today at 770.814.9304 (All Rights Reserved)

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!