The IRS Takes Monthly Payments

If you find yourself behind in tax liabilities, you can always borrow at the IRS Bank. The IRS has over 280 billion dollars owed to them by individual and business taxpayers.

When you find that you can’t pay what you owe, the IRS will work out some type of payment arrangement. The IRS guidelines for personal living expenses are very stringent. But the bottom line is that you only pay what you can afford each month. For example: A taxpayer who owes the IRS $43,000 may only be paying $50 per month and a taxpayer who owes $16,000 may be paying $800 per month.

How much you owe does not matter. The payment arrangements are based on how much you can pay. You must understand what the IRS guidelines allow BEFORE any contract is made with the IRS regarding monthly payments.

We review the taxpayer’s financial condition and can usually suggest the amount which the IRS will accept for a monthly payment before we contact the IRS. Our clients must approve the monthly payment amount before we agree to anything with the IRS. The best time to handle an IRS payment arrangement is BEFORE the IRS levies your bank account or garnishes your wages.

Please note : Also see my section on Installment Agreements Rules.