The IRS is meticulous when calculating back taxes and what you may owe them. But if you miscalculate how much you are required to pay them–they are not required by law to offer you any counteroffers even when such counteroffers may be more financially appropriate.

A recent case showed that the IRS made a mistake when calculating the amount of an individual’s IRS installment agreement payments. However, upon further investigation, the IRS Appeals officer discovered that the individual underestimated the amount he was obligated to pay the IRS. This resulted in the Appeal officer’s rejection of the IRS installment agreement altogether on the grounds that the IRS is not required by law to make any counteroffers.

CCH (http://intelliconnect.cch.com) reports:

Appeals Officer’s Rejection of Installment Agreement Was Not Abuse of Discretion

An IRS Appeals officer’s rejection of an installment agreement was not an abuse of discretion. The IRS erred by failing to consider the taxpayer’s required child support payments when evaluating his proposal, which resulted in a determination of a monthly payment amount that was too high. However, the payment amount proposed by the taxpayer was lower than the amount that would have been required for an installment agreement, and the IRS was not required to make a counteroffer.

It is beneficial to you to make sure that you have all of your numbers crunched correctly before proposing a payment plan to the IRS. Not only will correct numbers help your chances of getting an affordable IRS installment agreement approved, it will also save you from potential IRS problems in the future.

If you are unsure about how to settle an IRS installment agreement or IRS payment plan, you are entitled to professional tax help from a tax attorney or tax resolution specialist. In the end, getting a little extra tax help now can save you from more severe tax problems later. Make sure that you make educated decisions and calculated moves when working with the IRS—they’re watching out for their own bottom line, and you should watch yours too.

Tax Resolution Services is a team of tax attorneys, CPAs, and tax resolution specialists who are here to help you with your tax problems. Call us today at 1-866-477-7762 for a free tax resolution consultation or visit our website: www.taxresolution.com

More Tax Help, IRS News and Tax Relief Tips:

1. Tax Help Small Business Owners Struggling to Meet October 15th Tax Extension Deadline
2. IRS Tax Help From Tax Expert: What Individuals and Businesses Need to Know to Avoid Tax Problems
3. IRS Debt Relief News: Resolve to Put Your IRS Problems Behind You in 2010
4. Tax Help For Taxpayers Short on Cash: Filing a Tax Return Late is Better than Filing a False Tax Return
5. Your Unfiled Delinquent Tax Return Checklist: Stop the IRS Now and Avoid Steep Interest and Penalties from Accumulating

Tags: Back Taxes, IRS Installment Agreements, IRS Payment Plans, tax attorney, tax help, tax resolution

This entry was posted on Tuesday, December 1st, 2009 at 3:04 pm and is filed under Back Taxes, IRS Installment Agreements, Seeking Professional Tax Help. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.