Negotiating payment plans (installment agreements) with each of the various taxing authorities (IRS, FTB, EDD, BOE) is generally possible. Essentially, the agreement allows you or your business to pay off all or a portion of the total balance due over several months or years. There are numerous advantages to resolving your tax issue with a payment plan:
- Avoid enforced collection activity (levies, seizures, garnishments, etc.)
- Lien filing prevention
- Lien filing removal
- Penalty abatement
- Avoid having your business shut down
- Asset liquidation prevention
Analyzing whether a payment plan is the best strategy to resolve your tax issue is fact specific. There are various types of payment plan structures that may be appropriate for your situation. The structures available range from full payment to partial payment (meaning you will pay less than the total balance due). Through payment plans, lien prevention is possible, but not guaranteed. Therefore, it is important to understand how a payment plan may affect you. At Spaulding Legal, APC we experience negotiating payment plans and have a thorough understanding of the administrative law behind them, allowing you to incorporate the best strategy moving forward.