• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

payment (installment) plans with IRS

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

What is the name of your state? Ohio Can you tell me if someone gets on a payment plan with the IRS would that automatically mean a lien on your personal property for back taxes or, if you are paying your installments timely then would you be safe from a lien? Thinking about going the installment plan route for back taxes but my husband seems to think they would still put a lien on property even if we're on an installment plan.
 


abezon

Senior Member
The IRS doesn't bother putting a lien on property unless the taxpayer is not making payments.
 
IRS Payment plan

That's what I thought but Barker replied my hubby was correct so now it's 2 for 2--Are you absolutely sure Absecon?
 

abezon

Senior Member
They CAN put a lien on your property, but won't bother doing so unless you fall behind in payments. This is why I tell my clients NOT to sign installment agreements. You pay $50 for the priviledge of making regular payments & if you're a day late or a dollar short, the IRS cancels the remainder of the agreement & demands full payment. And starts filing liens if they don't get it. I always tell people to just send the IRS money every time they send out a letter. If you send a significant amount of money each time they ask for payment, you get the benefits of an installment agreement without the cost or rigidity. Unless you owe thousands, the IRS will not complain about the informal installment agreement.
 
T

theother

Guest
Abezon,

I thought that you ended up paying more interest on the money if you don't set up an installment plan. Is that true?
 

abezon

Senior Member
No, the interest rate is set by Congress. However, the IRS has the discretion to forgive penalties in certain cases & is probably more likely to do so when the taxpayer has completed a formal installment agreement.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top