IRS Installment Agreements

Typically acting with little or no regard for how a wage garnishment, lien, levy or property seizure affects you or your family, the IRS acts to collect back taxes as soon as possible. A Denver, Colorado based bankruptcy and tax lawyer, with a Master’s Degree in Taxation, attorney David M. Serafin has advised numerous clients as to the best options in settling, reducing, and subsequently paying off an income or employment tax liability for individuals and businesses alike. If you owe a seemingly unbearable amount of taxes (including interest and penalties), you are not deemed to be Currently Not Collectible or are not eligible for an Offer in Compromise, and the IRS or the State of Colorado is aggressively pursuing collection, The Law Office of David M. Serafin can negotiate an Installment Agreement.

If you have filed past tax returns for the years at issue and remain compliant with future filings, you can request an Installment Agreement. This allows you to make regular monthly payments the amount of which is based upon IRS guidelines as to your ability to pay and the overall amount owed compared to the avenues available for the IRS to otherwise collect the taxes. However, paying off the tax debt with an Installment Agreement will inevitably cost you more because the IRS continues to charge interest (and penalties if you deviate from full and timely compliance) while you continue to make monthly payments. Another cost of an Installment Agreement is a $105 IRS set up fee.

Also, until you successfully complete the Installment Agreement, the IRS can nonetheless file a Notice of Federal Tax Lien to protect the Government’s interests. But, the IRS cannot execute upon the lien and levy upon any personal or real property you own so long as the Installment Agreement is being reviewed or is in effect, or for 30 days after any denial of the Installment Agreement AND (if necessary) during the Appeals Process.

Even though the IRS will demand that you accept its proposed payment plan (because it wants to collect full tax debt as soon as possible), which often is based upon unrealistic expectations leaving the taxpayer with little or no disposable income and in financial hardship, the Law Office of David M. Serafin will level the playing field. We’re experienced in convincing the IRS to settle for an Installment Agreement that benefits the taxpayer as well, based on your income, expenses, assets and debts.

An IRS Installment Agreement is of particular benefit to those who have filed for chapter 7 bankruptcy in Colorado Bankruptcy Court. While a chapter 13 bankruptcy allows for the monthly (interest and penalty free) payback of non-dischargeable priority taxes in lieu of paying the IRS directly, a chapter 7 bankruptcy has no effect on a Priority tax debt. As such, an Installment Agreement combined with a chapter 7 bankruptcy will simultaneously allow the taxpayer to minimize further tax penalties, properly budget such payments each month and discharge most unsecured debts.

As the last thing you need is to be exposed to renewed IRS collection activity, the benefit of having a properly structured IRS Installment Agreement is critical. Call the Law Office of David M. Serafin at (303) 862-9124 for a free initial consultation if need help negotiating a fair and reasonable IRS Installment Agreement. An experienced Colorado bankruptcy and tax attorney, David M. Serafin has the unique expertise to provide you the most optimal relief available from crushing tax debt.