Installment Agreements with IRS and NCDOR
The Murray Moyer, PLLC has experience with securing installment agreements to satisfy federal and state tax liabilities. If the IRS or the NCDOR is sending you notices, and you are unable to pay the outstanding tax liability, you should consider an installment agreement as a collection alternative.
In certain circumstances, the taxing authorities may allow you to pay off your outstanding tax liabilities according to a monthly payment plan called an installment agreement. An installment agreement can be a beneficial collection alternative for both the taxpayer and government.
The Basics of an Installment Agreement
An installment agreement is an arrangement by which the IRS or NCDOR allows you to pay your tax liabilities over time. An installment agreement may not prevent the IRS or NCDOR’s right to file a tax lien; however, the filing of the tax lien may sometimes be avoided.
While negotiating an installment agreement, IRS or NCDOR revenue officers should inform taxpayers of certain information, including the need to be current with your filing obligations in order to qualify for such installment agreement.
Entering into an Installment Agreement
Unless you qualify for certain predefined programs, the IRS or the NCDOR will typically require you to furnish a financial statement detailing your assets and liabilities, bank accounts, employment information, and future income prospects. This financial information is provided to the IRS in a Collection Information Statement (“CIS”). The CIS contains detailed information about your income sources and assets.