In this challenging economy, more taxpayers are going to need tax help and will be hoping to pay their tax debt by negotiating payment plans with the IRS to pay their liabilities over time.

It is important to note that the IRS continues to add penalties and interest while you are making monthly payments. This may cause you to be paying what you consider a large monthly payment to the IRS and your outstanding balance may in fact be increasing due to additional penalties and interest.

The IRS may not explain this to you! So be careful!

Additionally, for taxpayers that enter into an installment agreement, the IRS may require a signed waiver to extend the time IRS can collect. While it is always in the best interest of the IRS to get a signed waiver, it may not be in the taxpayer’s best interest. If you are asked to sign a waiver, protect your rights, seek the advice of a tax resolution expert first.

The IRS in most cases, to protect their interest, will file a Notice of Federal Tax Lien, with the County Recorder’s office in the county you reside.  This will inevitably be reflected on your credit report decimating your credit (FICO) score.  In addition a recorded Federal Tax Lien means the IRS has a monetary interest (claim) against all real and personal property owned (at time of filing) and any and all real or personal property acquired in the future while the lien is in effect. Generally, the lien is effective throughout the 10 year Collection Statute of Limitations.

If you need help settling your tax debt, our specialized staff of attorneys, CPAs, EAs and tax professionals can help you successfully resolve your IRS problems. Visit the Tax Resolution Services web site  for a free tax relief consultation or call us at 866-477-7762.

More Tax Help, IRS News and Tax Relief Tips:

1. We’ve Expanded to Help More Taxpayers Resolve Their IRS Tax Problems!
2. Options for Business Owners Struggling to Meet the April 15 Tax Deadline
3. Ten Last Minute Filing Tips from the IRS - Save Time and Money When Filing Your 2008 Tax Returns
4. How to Negotiate an IRS Installment Agreement and Set Up a Payment Plan for Your Tax Debt
5. Frequently Asked Questions about IRS Payment Plans

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This entry was posted on Thursday, February 12th, 2009 at 4:57 pm and is filed under IRS Installment Agreements, Tax news and tips. 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.