If you owe less than $10,000 to the IRS, congratulations as you are much better off than any of our clients. You do not need the services of the Connecticut Tax Resolution Service (nor any tax resolution service) as this is a jam you can easily get out of yourself.
There is something called a Guaranteed Installment Agreement. The name doesn’t lie. If you meet these 6 criteria you are in:
- Owe income tax only of $10,000 or less (excluding penalties and interest (P&I));
- Have not failed to file any income tax returns or to pay any tax shown on such returns during any of the preceding five taxable years;
- Cannot pay the tax immediately;
- Agree to fully pay the tax liability within three years or before the Collection Statute Expiration Date (CSED), whichever is earlier;
- Agree to file and pay all tax returns during the term of the IA; and
- Have not entered into an installment agreement during any of the preceding five taxable years
As a matter of policy, the IRS grants guaranteed installment agreements even if taxpayers can fully pay their accounts, which is the icing on the cake. Unlike the criteria for other installment agreements, the dollar limit for guaranteed installment agreements of $10,000 only applies to tax. You may owe additional amounts in penalty and interest (both assessed and accrued) and qualify for a guaranteed installment agreement, so long as the tax liability alone is not greater than $10,000.
Even though we would appreciate your business, this one you can DIY. Go to IRS.gov/OPA to get started.