Atlanta CPA on IRS Installment Plans/Back Taxes/Offer in Compromise

Atlanta CPA on IRS Installment Plans/Back Taxes/Offer in Compromise

While you are in the throes of handling IRS tax issues and trying to evaluate between an Offer of Compromise or an Installment plan, frequently the options look bleak, as often they are. There are options for taxpayers 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.

IRS Form 9465 for 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 financially as interest and penalties continue to be assessed thus ensuring that you continue to owe even more additional monies rather than less. Before looking to set up an IRS Installment Plan, you look to other options available such as a loan from a bank, friends or family members.

Job 16:19 Even now my witness is in heaven; my advocate is on high.

Due diligence and wisdom should be exercised when doing your cash flow and to plan long term to ensure that you will be able to fulfill the financial commitment you make in a Formal IRS Installment Plan. For example, if you owe taxes for the 2008 tax year and have not yet filed your 2009 returns and have not yet done adequate tax planning for 2010, setting up an Installment Plan with the IRS might be one of the worst things you can do. Care should be exercised to both, get all of your 2009 returns filed first and then to evaluate your 2010 taxable income to ensure that you will have the taxes and monies to pay all of the tax years in question. Failing to do so can be especially problematic as one of the rules of being on an Installment Plan is that you have to stay current on all of your filings and payments for the duration of the payment period, or the IRS will void the Installment Agreement and reinstate collection efforts. Carefully evaluating all of your options allows you to have a much less problematic agreement and avoid unnecessary headaches, professional fees, and additional fines, penalties and interest. As with all IRS representation issues it is prudent to retain a CPA who is well-experienced in such matter as well as to have an Advocate to speak on your behalf. Below is sample of such an advocate letter that might be used to ensure your rights as a U.S. taxpayer are ensured:

Taxpayer Advocate Office
Ogden, UT 84402

I am writing you in a good faith attempt to come to terms over the above taxpayers' present predicament and to process an Offer in Compromise on their behalf. I am willing/eager to supply you with any information that you might need in order to process the Offer. I have attached for your convenience a copy of our most recent correspondence to the IRS Offer in Compromise Office in Atlanta detailing the issues of the case and requesting to take the case to Appeals if necessary. The crux of the area of disagreement is below and detailed in the attached letter. The taxpayers are desirous of getting "back into the system" as a compliant taxpayer ASAP.

I look forward to working with you to help you process and close their file and please do not hesitate to call me should you have any questions.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ http://www.john-dillard.com/

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it! To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304