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Pridgeon & Zoss, PLLC - Minnesota Tax Law Attorney
Solid Solutions to Serious Tax Problems
Income Tax Workouts • Responding to Notices
Business and Self-Employment Tax Problems

Installment Agreements

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Serving Clients Throughout 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 and MDR have developed reputations for ruthless collection practices from people who owe a significant amount of taxes.

However, in many cases, the truth is different than perception. Tax 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 and MDR will first look into the taxpayer’s available assets to find immediate financial assets to pay the tax liability. If liquid assets are insufficient, the tax agencies will then investigate whether equity in personal property can be liquidated or borrowed against for payment. Mortgage refinances are often a good way to borrow money to pay the IRS.

If all assets are locked up and unavailable to liquidate, the taxpayer’s income and expenses are reviewed, 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 and MDR recognize that individuals and families require a certain amount of cash flow to meet living expenses, but they do require taxpayers to be frugal and to not incur lavish, unnecessary living expenses.  They sometimes limit allowable living expenses to established standard amounts. Taxpayers must understand that their tax liability is a very real commitment that may require some changes in usual living expenses and lifestyles.

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

If you 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. We are recognized by IRS and MDR tax authorities as one of the prominent names in Minnesota tax law. Attorneys Mark Pridgeon and David Zoss have earned a reputation for integrity among IRS and MDR 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 and St. Anthony, our tax lawyers advise and represent clients in communities throughout Minnesota and Western Wisconsin. If you are facing a significant tax liability of $20,000 or more, contact the firm for a no-cost half-hour initial consultation with Minneapolis attorney for tax penalties at Pridgeon & Zoss, PLLC today. Contact us online or by telephone. Within the Twin Cities metro area, call 952-232-0371 or 612-455-8948; or call us toll free 877-221-1651 if you are located outside of the Twin Cities metro area.  You may also use the convenient email contact form to explain your circumstances and request a consultation.

Weekday office hours are 9 a.m. to 5 p.m. in our Edina office, and 10:00 a.m. to 4:00 p.m. in our St. Anthony office. Evening and weekend appointments may be available by special arrangement.