IRS Payment Plan Attorney

Can (and Should) You Request an IRS Payment Plan? Find Out from an Experienced Tax Attorney at Oberheiden P.C.

**Attorney Alina Veneziano**
IRS Payment Plan Attorney & CPA Team Lead

**Alice Campbell**
IRS Payment Plan Team
Former Special Agent (IRS)

If you owe the Internal Revenue Service (IRS) more than you can afford to pay, you will need to be careful to avoid incurring unnecessary penalties and interest. Failing to pay on time can also lead to collection action—and the IRS has a variety of tools for enforcing taxpayers’ liability. An IRS payment plan lawyer at Oberheiden P.C. can help you make informed decisions; and, if you need help dealing with the IRS, your attorney can deal with the IRS on your behalf.

Negotiating a payment plan with the IRS is a viable option in some (but not all) circumstances. Additionally, even if negotiating a payment plan is an option, this doesn’t necessarily mean it is the best option you have available. Informed decision-making is key, and our attorneys can help you choose the path forward that protects you while also minimizing the amount you owe.

Obtaining a Payment Plan from the IRS

So, what do you need to know about obtaining a payment plan? Entering into a payment plan is an option for taxpayers who need more time to pay the IRS. Under the Internal Revenue Code, any taxes due in connection with a return are due at the time of filing; and, if you do not pay the full amount when due, penalties and interest begin to accrue immediately.

Recognizing that taxpayers may not always be able to satisfy their tax obligations immediately, the IRS offers a variety of options. One of these options is entering into a payment plan. However, obtaining a payment plan is not automatic. You must request a payment plan from the IRS, and you must secure the IRS’s approval to make partial payments over time.

5 Important Facts About IRS Payment Plans

Here are five more important facts about IRS payment plans:

1. You Will Continue to Accrue Interest and Penalties

Even if you negotiate a payment plan with the IRS, you will still continue to accrue interest and penalties. The IRS makes this clear, stating, “[i]nterest and some penalty charges continue to be added to the amount you owe until the balance is paid in full.” As a result, while it is important to make sure you negotiate a monthly payment that you can afford, it is also important not to delay full payment of your federal tax liability longer than necessary.

2. Different Rules and Requirements Apply in Different Circumstances

The steps you need to take to obtain a payment plan from the IRS depend on your individual circumstances. There are different rules and requirements for tax debts greater than $50,000 and greater than $100,000, and there are different rules and requirements for “short-term” and “long-term” plans as well. If you decide to seek a payment plan, an IRS payment plan attorney at Oberheiden P.C. can help you take all of the correct steps to secure the IRS’s approval.

3. Requesting a Payment Plan Can Delay (or Prevent) Collection

Requesting a payment plan from the IRS can have immediate benefits if you are facing collection. As the IRS explains:

“When you request a payment plan (installment agreement), with certain exceptions, the IRS is generally prohibited from levying and the IRS’s time to collect is suspended or prolonged while an Installment Agreement (IA) is pending. An IA request is often pending until it can be reviewed, and an IA is established, or the request is withdrawn or rejected.”

As we discuss below, you may have other options for avoiding IRS collection as well. As a result, while this can make requesting a payment plan an attractive option, this is ultimately just one of several factors to consider as you go through the process of deciding how to handle your tax debt with the IRS.

4. Missing a Payment Can Have Serious Consequences

If you enter into a payment plan with the IRS, missing any of your monthly payments can have serious consequences. The IRS may send you a notice of intent to terminate your payment plan—and termination would mean that your full balance immediately becomes due. Revising an IRS payment plan is an option in some cases; and, if you have concerns about making your payments after the IRS accepts your plan, you should consult with an IRS payment plan lawyer about your situation as soon as possible.

5. Negotiating a Payment Plan May Not Be Your Only (or Best) Option

While negotiating a payment plan may be an option, it might not be the only (or best) option you have available. For example, negotiating an Offer in Compromise (OIC) is an option for many struggling taxpayers as well. Alternatively, if you disagree with the IRS’s determination of your liability, filing an appeal could lead to a reduction in your outstanding liability.

Dr. Nick Oberheiden

Founder

Attorney-at-Law

Lynette S. Byrd

Former DOJ Trial Attorney

Partner

Brian J. Kuester

Former U.S. Attorney

Hon. Kevin McCarthy

55th Speaker, U.S. House of Representatives (ret.)

Government Consultant

Mike Pompeo

Of Counsel

Former U.S. Secretary of State

John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara

Federal Appeals Attorney

Nicholas B. Johnson

Former Prosecutor

Roger Bach

Former Special Agent (DOJ)

Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen

Former Supervisory Special Agent (FBI)

The Risks of Failing to Pay In Full (Without a Payment Plan)

If you owe the IRS more than you can afford to pay (or can comfortably afford to pay), you will need to make a decision about how to proceed promptly. Failing to pay the IRS in full without a payment plan can have serious consequences as well. For both individual and corporate taxpayers, the risks of failing to pay in full without a payment plan include:

Penalties – The IRS charges penalties for failure to file, failure to pay, underpayment, and a variety of other tax law violations. Many of these penalties increase on a monthly basis.
Interest – You will accrue interest on all past-due amounts (including back taxes and penalties). This can substantially increase the amount of your debt to the IRS.
IRS Summons – If the IRS decides to collect your tax debt, it will issue a summons to obtain information about your income, assets, and ability to pay. Failing to comply with this summons can trigger additional penalties.
IRS Liens – One way the IRS enforces taxpayers’ obligations is by placing liens on their property. A lien can severely limit your access to financing, and it can make it much more difficult to sell the encumbered property.
IRS Levies – The IRS uses levies to seize taxpayers’ property in order to satisfy their tax debt. IRS levies can have other significant financial consequences as well.

FAQs: Understanding IRS Payment Plans (and Their Benefits and Risks)

Am I Eligible for an IRS Payment Plan?

You may be eligible for an IRS payment plan if you owe more than you can afford to pay all at once. To determine your eligibility (and to determine if requesting a payment plan is your best option), you should consult with an experienced IRS payment plan attorney promptly.

Is a Payment Plan Different from an Installment Agreement?

Payment plans and installment agreements are fundamentally the same, and the IRS uses these terms interchangeably at times. Generally, the term “payment plan” is used to describe a plan with a relatively short payoff period, while the term “installment agreement” is more commonly used with longer-term arrangements and substantial tax debts. Both have benefits and risks, and both require approval from the IRS.

Is a Payment Plan Different from an Offer in Compromise (OIC)?

Yes, a payment plan is different from an offer in compromise (OIC). Negotiating a payment plan allows you to pay your tax debt over time without facing collection, while negotiating an OIC allows you to pay less than the full amount you owe. In many cases, taxpayer can combine OICs and payment plans to come up to date on their federal tax obligations.

Do I Need an Attorney to Request a Payment Plan from the IRS?

While you are not required to hire a lawyer to help you request a payment plan, working with an experienced IRS payment plan lawyer is strongly recommended. Failing to obtain the IRS’s approval for your proposed payment plan can leave you owing more than you can afford; and, while negotiating a payment plan is a good option in many circumstances, it isn’t necessarily the only option you have available. An experienced attorney will be able to help you make informed decisions and deal with the IRS on your behalf.

What Happens if I Don’t Make the Payments Under My IRS Payment Plan?

If you don’t make the payments under your IRS payment plan, the IRS may send you a notice of intent to terminate your plan. At this stage, you will need to work closely with an experienced IRS payment plan attorney who can help you avoid termination and collection. While you may still have multiple options available, time is of the essence.

Speak with an IRS Payment Plan Lawyer at Oberheiden P.C. for Free

Do you need to discuss your options with an IRS payment plan attorney? If so, we encourage you to schedule a free, no-obligation consultation as soon as possible. To speak with an experienced lawyer at Oberheiden P.C. in confidence, call 888-680-1745 or tell us how we can get in touch online today.