1. Monitoring your tax case -- We manage all of the contact with the IRS -- handling all deadlines - keeping the IRS from levying you until an agreement is reached.
2. Timing -- the average person might go too fast in setting up an agreement with the IRS. Particularly, when some IRS liabilities are going to expire -- your tax professional should be careful at entering into an agreement too fast. Furthermore, your tax professional should also be able to gauge where you stand in the collection process so your first move is a good one without haste.
3. The amount of the agreement -- A hastily arranged payment plan might be more than you can handle - monthly. Your tax professional should be able to make the agreement manageable and doable for you - utilizing the 12 month adjustable tactic, streamline agreements and other tricks of his/her trade.
4. Planning ahead for a default -- With your tax debt possibly expiring in a few years - you obviously want to pay the IRS as little as you have to. For this reason, you and your tax professional might team up to see if "defaulting" your agreement - which buys you about four months of no payments -- can help you pay less - and then planning for these defaults in advance of tax debts expiring.
5. Penalty abatement -- If the payment plan was the only avenue for getting yourself out of the collection process, your tax professional should ask for a penalty abatement once the agreement has been honored EVEN if you don't have strong case for it (but filing and paying your taxes going forward certainly helps this cause).
While we hope to NOT to set you up in a payment plan on your back taxes, if we have to -- we'll try to give your tax case as much value as we can - with the goal of you paying the absolute least towards your tax debt. Please call us at 1-888-282-4697 to discuss your tax issue or send us a description by EMAILING US. Staff of Washington Tax.