The Internal Revenue Service and State and Local Taxing Authorities have standards and forms whereby they can assess the ability to pay of the taxpayers. These forms typically request to see what assets the taxpayers have, the taxpayer’s current monthly income, and the taxpayer’s current monthly expenses. With this information the taxing agencies can determine the ability and the amount of the taxpayer to pay. The Internal Revenue Service and its agents and employees have to generally comply with the collection standards applicable in the Internal Revenue Manual.
The Internal Revenue Manual does allow for deviation, however only in certain cases and upon the discretion of the agent generally. It is very fact based and oriented to each client’s situation however there are national and local standards that apply that must be taken into consideration as per each taxpayer’s current economic situation. At the Carr Law we have the ability, knowledge and have been able to evaluate the taxpayer’s financial situation and the applicable guidelines and then make arguments for the taxpayer as to the appropriate acceptable amount that the taxpayer could afford and the taxing authority could accept in reasonable payments.
Tax Installment Agreements