Installment Payment Plans by IRS Are Not Perfect
It is a known fact there are procedural difficulties in IRS collection cases. Tax professionals are fully aware these difficulties result in delays. Delays cost the taxpayer time and money because, typically, the taxpayer and the IRS come to an agreement that doesn’t suit the unique circumstance of the taxpayer.
Tax professionals have noticed it is common for the IRS to agree to an IRS installment plan with a taxpayer who can pay their bill in full or the IRS expects a taxpayer with no earnings to enter into a payment plan. This mismatch arises because there are IRS officials who are not sufficiently trained and knowledgeable. The IRS is a massive bureaucracy that often results in errors and poor judgment; it is impossible to get one-on-one personal service from the IRS.
A qualified tax professional will have the expertise to assess whether or not a specific IRS official has the training and knowledge to deal with a taxpayer’s situation. A tax professional will be able to make a distinction between an IRS official who is incompetent and one who is efficient and knowledgeable.
Due to the size and imperfections of the IRS, its officials cannot provide a service to the public that is of a consistently high standard. It is becoming even more difficult for the IRS to improve due to its determination to shut the tax gap. This decision was made in order to assist in the payment for the federal shortfall quadrupling.
A TIGTA study found seventeen of fifty seven installment cases were recognized so that taxpayers with financial means could settle their tax bill in full. By doing this, they could steer clear of the charge for an installment contract, penalties and interest.
A tax payer has a much higher chance of saving both time and money if a tax professional negotiates with the IRS on his or her behalf.