At Murray Moyer, we assist taxpayers in North Carolina navigate the complexities of settling federal and state tax liabilities through installment agreements.
If you’re receiving notices from the IRS or the NCDOR and find yourself unable to pay the outstanding tax debt in full, an installment agreement may offer a viable solution to manage your tax obligations.
Understanding Installment Agreements
An installment agreement is a formal arrangement between a taxpayer and the IRS or NCDOR that allows for the payment of tax liabilities over an extended period. This method provides a structured way to settle tax debts, making it a mutually beneficial option for both the taxpayer and the government.
Key Features of Installment Agreements
- Monthly Payments: Taxpayers agree to make regular monthly payments towards their tax debt.
- Tax Liens: Entering into an installment agreement may not prevent the filing of a tax lien, although in some cases, lien filing can be avoided.
- Filing Obligations: To qualify for an installment agreement, taxpayers must be current with all filing requirements.
Process of Establishing an Installment Agreement
The procedure to secure an installment agreement involves several important steps, tailored to meet both IRS and NCDOR requirements.
Preliminary Steps
- Assessment of Tax Liability: The first step is understanding the total amount owed, including taxes, penalties, and interest.
- Current Filing Status: Ensure that all tax returns are filed and up to date, as this is a prerequisite for qualifying for any installment agreement.
Financial Disclosure
- Collection Information Statement (CIS): For the IRS or NCDOR to consider an installment agreement, taxpayers are usually required to submit a CIS, which provides a comprehensive overview of their financial situation, including assets, liabilities, income, and expenses.
Negotiating the Agreement
- Payment Terms: The monthly payment amount is determined based on the taxpayer’s ability to pay, as demonstrated in the CIS.
- Duration: While the term of an installment agreement may vary, it’s typically structured to allow for the full repayment of the tax debt within the collection statute expiration date.
How Murray Moyer Can Assist
Our team at Murray Moyer offers guidance and representation throughout the installment agreement process, including:
- Assessment and Planning: We evaluate your financial situation and tax liabilities to determine the best course of action.
- Preparation of CIS: Our attorneys assist in compiling and presenting a detailed Collection Information Statement to the IRS or NCDOR.
- Negotiation: We negotiate with tax authorities on your behalf to secure favorable terms for your installment agreement.
- Compliance Advice: Our team ensures you understand and adhere to all filing and payment obligations to maintain the agreement.
Why Choose Murray Moyer
With Murray Moyer, you gain a partner committed to alleviating the stress and uncertainty of tax debts. Our experienced tax attorneys understand the intricacies of both IRS and NCDOR policies and procedures, enabling us to advocate effectively on your behalf.
Whether you’re facing federal or state tax liabilities, we’re here to help secure an installment agreement that fits your financial situation, allowing you to fulfill your tax obligations without undue hardship.
Contact us today to explore how an installment agreement can provide a path forward in resolving your tax liabilities.