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Installment Agreements

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Serving Clients Throughout the Twin Cities Metro Area and Western Wisconsin

Receiving a letter informing you that you owe tens of thousands of dollars can cause an immediate panic. That is completely understandable. The IRS has developed a reputation for its ruthless collection practices from people who owe a significant amount of taxes.

However, in many cases, the truth is different than perception. IRS collection agents are most interested in collecting as much of the tax liability as they can, and that usually means working with the taxpayer to find a workable solution. Personalized installment agreements are among the most common strategies that satisfy the tax auditors, as well as the tax payer.

Do You Qualify?

When determining whether an installment payment plan is feasible, the IRS will first look into the taxpayers available assets to find immediate financial assets to pay the tax liability. If liquid assets are insufficient, the IRS will then investigate whether equity in personal property can be liquidated or borrowed against for payment. Mortgage refinances were often a good way to borrow money to pay the IRS.

If all assets are locked up and unavailable to liquidate, the IRS will investigate the taxpayer’s income and expenses, to determine whether available income can be applied toward installment payments over a reasonable period of time. When working out an installment plan, the IRS will expect the taxpayer to be prudent with expenses, but will not be excessive in their demands. The agency recognizes that individuals and families require a certain amount of cash flow to meet living expenses and they do not encourage the taxpayer to use every available dollar to pay the tax bill. However, taxpayers must understand that the tax liability is a very real commitment that may require some changes in usual living expenses.

Installments · Offers in Compromise · Taxes Currently Not Collectible · Appeals

If you are a resident of a community in the Twin Cities metro area or western Wisconsin and owe $20,000 or more to the IRS, an installment agreement may be your best option for satisfying your tax debt. Schedule an initial consultation with Pridgeon & Zoss, PLLC. Our firm is recognized by IRS tax authorities as one of the prominent names in Twin Cities tax law. Attorneys Mark Pridgeon and David Zoss have earned a reputation for integrity among IRS auditors and tax collection authorities. When they negotiate an installment plan or offer in compromise, their options are taken seriously by the agents across the table.

Experienced Minnesota Attorneys Handling Back Tax Issues · Tax Payment Plans

From offices in Edina, our lawyers advise and represent clients in communities throughout Hennepin County, Ramsey County, Dakota County and Washington County, Minnesota, and St. Croix County in western Wisconsin. Contact the firm to arrange an initial consultation with a Minneapolis attorney for installment agreements at Pridgeon & Zoss, PLLC today.