If you owe less then $25,000 you can usually get a payment plan for up to 60 months.

However, IRS will deny you a payment plan if you have un-filed tax returns. Once all your tax returns have been filed;  IRS will require you to list  your assets, debts, income and  - your monthly living expenses.  The IRS Collection Agent will require you to complete a 433A or a 433B if you own a business.  This is NOT a Form you want to complete without professional help.  The form is like a one page financial statement.  It is not that difficult to complete, it is the unwritten rules that can harm you if you don't understand how IRS calculates what THEIR monthly payment  should be.

Do not allow the IRS or your Tax Professional to rush you into signing a 433A or 433B.  Be sure that all the figures are correct before submitting to IRS.  And remember that IRS has special rules regarding certain monthly expenses, example: IRS does not allow you to claim tuition for private schools, public or private college expenses, voluntary retirement contributions, cable television and other similar expenses.  However, they may allow these expenses if you can prove that they are necessary for the health and welfare of you or your family or for production of income.

IRS Collection Agents listen to sob stories all day long, 5 days a week.  If they had compassion, I am sure it has disappeared over the years.  Not realizing that it is a felony to lie to an IRS Agent - people give all kinds of excuses. (This is the number one reason why Tax Professionals do not want their client's to speak directly with IRS without their knowledge)

If your tax issues stem from not filing your back taxes, a reliable Tax Preparer can help you by contacting IRS on your behalf and obtaining the necessary information to file your back taxes.  If your tax problems are greater then back taxes, you can look in the yellow pages under "Taxes-Enrolled Agents"  for help.  This would be the same action you would want to take if you owe IRS more then $25,000.

This article was written by C. Ingraham is a basic tax instructor in the San Francisco Bay Area and can be found at http://www.taxeswilltravel.com  For legal explanation of the above article, visit: http://www.irs.gov keywords; installment agreement