Tax Payment Plans

If your unpaid back taxes mount up to a point where you cannot afford to pay them all at once, and the other tax strategies discussed here do not work for you, then IRS allows taxpayers to set up payment plans to pay off your back taxes gradually. Unfortunately, during all this time, interest continues to accrue.

To apply for a payment plan, IRS will ask you for a full, detailed set of financial statements, a Form 433-A, 433-F, and/or a Form 433-B if you have your own business. These are kind of a “tell all” set of questions that will reveal to IRS where all your assets and income sources are. The Forms are signed under penalty of perjury, so you must be truthful and complete.

Like all other aspects of tax practice, however, there can be an art to submitted a payment plan application and the negotiations with IRS that can follow. I have handled hundreds of payment plans during my career, so if you think you want a payment plan with IRS or the state taxing authorities, you should call me.

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