Blog by BR Accounting and Tax Service

$250,000 or less over the CSED installment agreement

  • BR Accounting And Tax Service

Categories: IRS Audits , Tax Accountant , Tax Professional , Tax Resolution , Tax Resolution Professional , Tax Services

Well hello!  We focus on resolving tax issues in Eastern Prince William County and throughout the lower Northern Virginia area.

As the pandemic progressed the Internal Revenue Service could see that there were going to be a lot of taxpayers in real danger of needing better options than the previous payment installment agreements that had been in place prior to that time. Last week, IRS announced that it was making one such option, that of the $250,000 or less over the CSED installment agreement, permanent.  The text of Darren Guillot’s post is:

“During the pandemic, IRS piloted more flexible installment agreements to help taxpayers. Specifically, individuals and out of business sole proprietors who owe $250,000 or less can opt to establish a payment plan that satisfies the liability within the life of the Collection statute - with no financial statement required. This flexibility is available only when working with Campus Collection, and allows taxpayers to set their own monthly payment amount and resolve their tax debt in a timeframe that works for them, but within the statutory period. The key is to be proactive and resolve your tax balance early - before enforcement and/or assignment to the Field. A Notice of Federal Tax Lien determination is still required. After two (2) years of piloting, we learned taxpayers and tax pros really liked this policy and the results have been favorable. So, we recently decided to make this new flexibility a permanent option. Thank you all for your feedback and suggestions making payment of taxes easier and helping us provide a better experience for America's taxpayers!”

As stated here, this option is not available to those who are in the “crosshairs” of enforcement and field agents.  And to reiterate, in order to take advantage of the larger installment agreement deal (without having to provide your financial information – 3 to 6 months of: Bank Statements, retirement statements, insurance statements, asset valuations; investment statements; personal bills, etc.), it is a good idea to address the problem early.  Also, a notice of a federal tax lien (as we’ve discussed in previous posts) is just a notice to everyone that a lien exists.  The tax lien arises by statute every time the IRS assesses a tax due on a taxpayer.

If ever you’re feeling overburdened by your tax situation or you’d rather be doing something else with your time, just remember we’re here to help you with all of your tax preparation, resolution/representation needs.  Now and in the future. Don’t put off addressing your tax situation. Feel free to contact us or message us with any questions you may have in approaching your specific tax scenario.