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Using Delays and Payment Plans to Stop the IRS Collection Process

When you owe taxes its just a matter of time before the IRS begins to take actions to collect the money you owe. The IRS collection process begins slowly by sending you a series of collection letters and escalating to a tax lien or levy on your income, assets or both, a seizure or garnishment of your wages or other income. Don't think this won't happen to you!


The best way to stop the collection process is to simply pay your taxes. Pay what you owe and the collection process will usually stop. But what if you can't pay your taxes? What if you can pay them but just need more time?

The best ways to stop the IRS collection process is by taking a series of actions appropriately matched to each collection procedure taken by the IRS. There are numerous options available designed to keep you out of trouble and give you ample time. Using delays and payment plans to stop the IRS collection process are often the best strategies.

Which type of taxpayer most most represents you?
  • You can pay in full now
  • You can pay in full in the near future
  • You can pay in full given enough time
  • You can't pay in full but can pay something
  • You can't pay anything now but can pay later
  • You can't pay anything now and can possibly pay later
  • You can't pay now and can't pay later
The best options for settling your tax debt will depend upon which of these applies to you. Depending upon which categories apply, narrows down your field of options that are available. The types of payment plans and installment agreements available will depend upon which categories apply to you.

Ready to pay your tax debt now?
Even if you are ready to pay your tax debt in full today .. if you waited too long, you may find that prior IRS collection actions have seriously and irreversibly damage your credit, business reputation and standing, resulted in penalties, interest and other problems that may continue for quite some time even after you paid the taxes you owe.

Just need more time to pay?
Sometimes, just obtaining additional time to pay is often your best option. Maybe your money is tied up in investments you don't want to sell now. Maybe you need the money now for business reasons. Maybe you lost your job or you are making less than before. Maybe you can't pay now for a variety of other reasons.

Whatever the reason, you need to structure a payment plan that you can live with -- and of course; one that would be agreeable to the IRS.

First step in the negotiating tax settlement
The most first step in negotiating tax debt is contact, or preferably have your CPA firm, contact the IRS as early as possible in the collection process. This will often give you the maximum amount of time to pay and certainly the least amount of aggravation. By simply acknowledging that you received the collection letters you can often get over a month's delay in which to either pay or come up with a payment plan on your tax debt. Once you get the IRS to give you an extension to hold on the collection process, this should give you ample opportunity to structure the best plan in your situation.

Negotiating tactics with the IRS
Negotiating with the IRS requires in-depth knowledge of who you're dealing with, knowing what the IRS will do, and knowing how to get the resolution possible given your situation. This is not a negotiation you should try to do yourself. Try to do this yourself and you will be asked to disclose where you live, what your phone numbers are, where you bank, where you work, etc. - just the kind of information you do not want the IRS to know. Hiring a licensed tax professional eliminates all this. Once we inform the IRS that we represent the taxpayer, the calls immediately stop.  All calls regarding collections are routed to us.

Find out more
We are a fully-licensed, certified public accounting firm, successfully representing taxpayers before the IRS for over a decade. You can find out more information by visiting our website (www.cpamiami.com).