4891 Independence St., Suite 240
Wheat Ridge, Colorado 80033
The IRS will accept an Installment Agreement (IA) in most situations. IAs on balances of under $50,000 are easily arranged if the debt can be paid within six years. In such situations, professional assistance may not be necessary. In other situations, an IA payment may not be large enough to pay the debt over time. If one is unable to pay any amount, the IRS does have a Currently Not Collectible (CNC) status. This is a temporary status where the IRS recognizes that a taxpayer does not have an ability to make a payment at this time. In the two latter situations, it is important to have a long term plan regarding the ultimate resolution of the debt.
One must be current with tax return filings to set up an IA. It is important to be current with estimated tax payments and/or withholdings while in IA status. New balances default IAs and terminates the CNC status.