• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

RJS LAW - Tax and Estate Planning

RJS LAW: San Diego Tax Attorney | IRS | FTB | CPA | California

Header Right

SOUTHERN CALIFORNIA’S FINEST
LAW FIRM

COMPLIMENTARY CASE EVALUATION

SAN DIEGO
(619) 595-1655
El CAJON
(619) 777-7700
  • Home
  • About
    • Ronson J. Shamoun, ESQ., LL.M.
    • Chandara Diep, ESQ., LL.M.
    • Devon J. Arabo, ESQ., LL.M.
    • Brian M. Malloy, Esq.
    • Andrea Cisneros Valdez, Esq., LL.M.
    • Sam Imandoust, ESQ., LL.M
    • Lauren Suarez, ESQ., LL.M.
    • John I. Forry, Esq.
    • Martin Schainbaum, ESQ., LL.M.
    • Kaveh Imandoust, JD, MBT, CPA
    • Joseph Cole, ESQ., LL.M.
    • Christopher Engelmann, ESQ., LL.M.
    • Remy Hogan, Esq., LL.M.
    • Steve S. Mattia, Esq.
    • Dod Ghassemkhani, ESQ.
    • Vincent Renda, Esq.
    • Pedro Bernal, Esq.
    • Sabri P. Shamoun 1938-2023
    • Melanie M. Shamoun
    • Renae Arabo
    • Hilary Dargavell
    • Sandie Portilla
    • Lupita C. Torres
    • Jewell Cornejo
    • Kesia Belford
    • Danielle N. Misleh
    • Judith G. Jeremie, JD
    • Rebecca Shuman
    • Michael Lutzky, CPA
    • Gianna Iskander
  • Practices
    • Tax
      • IRS TAX MATTERS
        • IRS Appeals
          • IRS Appeals Process
          • Contesting an IRS Levy
          • Why Retain RJS LAW for IRS Appeals
          • 4 Tips For Navigating The IRS Rapid Appeals Process
        • IRS AUDITS
          • IRS Correspondence Audits
          • What are IRS Field Audits?
          • Initial IRS Compliance Center Audits
          • IRS Office Audits
          • What happens in an IRS Audit?
          • Taxpayer Rights Under IRS Publication 1
          • IRS Warns Taxpayers About Scam
        • NOTICES
          • IRS Notices
          • IRS Letters
          • FTB Notices
          • Avisos en Español
        • IRS Collections
          • Avoiding and Eliminating IRS Tax Liens
          • Collection Due Process Hearing
          • CP 501 – IRS Notice
          • Failure to file a tax return: What happens?
          • How the IRS calculates interest
          • How to get a tax levy released
          • ACS – Automated Collection System
          • IRS Collections Process
          • IRS Interest Abatement
          • IRS Revenue Officers
          • Jeopardy Assessments and Jeopardy Levies
          • National Tax Agencies
          • RJS LAW Approach to Collections
          • IRS Statute of Limitations on Collections
          • Streamlined Installment Agreements
          • Tax Penalty Abatement
          • Taxpayer Assistance Orders TAO
        • IRS Payroll Tax
          • Independent Contractor Reclassification Audits
          • IRS Forms 940 and 941
          • IRS Trust Fund Interviews
          • Payroll Tax Liability Payment Options
          • Trust Fund Recovery Penalties
        • IRS Wealth Squad
        • Offer in Compromise & Tax Settlements
          • OVERVIEW OF OFFER IN COMPROMISE PROCESS
          • The Offer in Compromise Process
          • Appealing an Offer in Compromise to the IRS
          • How does the IRS evaluate an Offer in Compromise
          • Offer in Compromise and Dissipated Assets
          • Offer in Compromise Requirements
          • Pros and Cons of an Offer in Compromise
          • Why Choose RJS LAW?
          • Offer in Compromise Alternatives
          • Actual IRS Offer in Compromise Results
      • STATE TAX MATTERS
        • EDD California Payroll Tax Lawyer
          • EDD Investigations
          • EDD Collections – Liens, Levies, and Garnishments
        • CDTFA – California Sales Tax
          • California Sales Tax Appeals
          • California Sales Tax Audits
          • California Department Of Tax And Fee Administration – CDTFA
        • California State Tax Matters – California Franchise Tax Board | FTB | EDD
          • California Residency Audits
          • Discharging State Income Taxes in Bankruptcy
          • State Tax Practice – Outside of California
      • CRIMINAL TAX ISSUES
        • Criminal Investigation Division
        • IRS Criminal Investigation Division Tactics
        • Criminal Tax Defense – Tax Crimes
        • Currency Transaction Records & Suspicious Activity Reports
        • IRS Methods of Proof: Tax Fraud and Evasion
        • Methods IRS Agents Use to Locate Assets
        • IRS Special Agent Visits
        • Are You a Criminal Investigation Target?
        • Criminal Tax Attorney vs. White Collar Defense
      • CORPORATE TAXES
      • TAX COURT LITIGATION
      • Innocent Spouse Relief
    • International Tax
    • Estate Planning
    • Trust Litigation
    • Trust, Estate & Probate Litigation
    • Trust & Estate Administration
    • Probate
    • Bankruptcy
      • Bankruptcy (FAQ’s)
    • Civil Litigation
    • Criminal Defense
    • Accidents & Injury
    • Corporate & Transactional
    • Private Wealth Services
    • Real Estate Law
      • Landlord Tenant Law
    • Employment Law
  • Tax Institute
    • 10th Annual USD School of Law – RJS LAW Tax Institute
    • 9th Annual USD School of Law – RJS LAW Tax Institute
    • 8th Annual USD School of Law – RJS LAW Tax Controversy Institute – July 28th, 2023
    • 7th Annual USD School of Law – RJS LAW Tax Controversy Institute – July 15th 2022
    • 6th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 5th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 4th Annual USD School of Law – RJS LAW Tax Controversy Institute
  • Testimonials
  • Giving
    • Giving
    • RJS LAW Donates Billboard to the Girl Scouts
  • Awards
    • Awards
    • Ronson J. Shamoun at events with various dignitaries
    • SD50 Extraordinary Leadership
    • Media
    • Video Gallery
  • Blog
  • Pay
  • Contact
  • en English
    • en English
    • es Español

WINNER OF THE UNION TRIBUNE SAN DIEGO'S BEST TAX LAW FIRM

 


9 YEARS

Call
Contact
Blog
  • Home
  • About
    • Ronson J. Shamoun, ESQ., LL.M.
    • Chandara Diep, ESQ., LL.M.
    • Devon J. Arabo, ESQ., LL.M.
    • Brian M. Malloy, Esq.
    • Andrea Cisneros Valdez, Esq., LL.M.
    • Sam Imandoust, ESQ., LL.M
    • Lauren Suarez, ESQ., LL.M.
    • John I. Forry, Esq.
    • Martin Schainbaum, ESQ., LL.M.
    • Kaveh Imandoust, JD, MBT, CPA
    • Joseph Cole, ESQ., LL.M.
    • Christopher Engelmann, ESQ., LL.M.
    • Remy Hogan, Esq., LL.M.
    • Steve S. Mattia, Esq.
    • Dod Ghassemkhani, ESQ.
    • Vincent Renda, Esq.
    • Pedro Bernal, Esq.
    • Sabri P. Shamoun 1938-2023
    • Melanie M. Shamoun
    • Renae Arabo
    • Hilary Dargavell
    • Sandie Portilla
    • Lupita C. Torres
    • Jewell Cornejo
    • Kesia Belford
    • Danielle N. Misleh
    • Judith G. Jeremie, JD
    • Rebecca Shuman
    • Michael Lutzky, CPA
    • Gianna Iskander
  • Practices
    • Tax
      • IRS TAX MATTERS
        • IRS Appeals
          • IRS Appeals Process
          • Contesting an IRS Levy
          • Why Retain RJS LAW for IRS Appeals
          • 4 Tips For Navigating The IRS Rapid Appeals Process
        • IRS AUDITS
          • IRS Correspondence Audits
          • What are IRS Field Audits?
          • Initial IRS Compliance Center Audits
          • IRS Office Audits
          • What happens in an IRS Audit?
          • Taxpayer Rights Under IRS Publication 1
          • IRS Warns Taxpayers About Scam
        • NOTICES
          • IRS Notices
          • IRS Letters
          • FTB Notices
          • Avisos en Español
        • IRS Collections
          • Avoiding and Eliminating IRS Tax Liens
          • Collection Due Process Hearing
          • CP 501 – IRS Notice
          • Failure to file a tax return: What happens?
          • How the IRS calculates interest
          • How to get a tax levy released
          • ACS – Automated Collection System
          • IRS Collections Process
          • IRS Interest Abatement
          • IRS Revenue Officers
          • Jeopardy Assessments and Jeopardy Levies
          • National Tax Agencies
          • RJS LAW Approach to Collections
          • IRS Statute of Limitations on Collections
          • Streamlined Installment Agreements
          • Tax Penalty Abatement
          • Taxpayer Assistance Orders TAO
        • IRS Payroll Tax
          • Independent Contractor Reclassification Audits
          • IRS Forms 940 and 941
          • IRS Trust Fund Interviews
          • Payroll Tax Liability Payment Options
          • Trust Fund Recovery Penalties
        • IRS Wealth Squad
        • Offer in Compromise & Tax Settlements
          • OVERVIEW OF OFFER IN COMPROMISE PROCESS
          • The Offer in Compromise Process
          • Appealing an Offer in Compromise to the IRS
          • How does the IRS evaluate an Offer in Compromise
          • Offer in Compromise and Dissipated Assets
          • Offer in Compromise Requirements
          • Pros and Cons of an Offer in Compromise
          • Why Choose RJS LAW?
          • Offer in Compromise Alternatives
          • Actual IRS Offer in Compromise Results
      • STATE TAX MATTERS
        • EDD California Payroll Tax Lawyer
          • EDD Investigations
          • EDD Collections – Liens, Levies, and Garnishments
        • CDTFA – California Sales Tax
          • California Sales Tax Appeals
          • California Sales Tax Audits
          • California Department Of Tax And Fee Administration – CDTFA
        • California State Tax Matters – California Franchise Tax Board | FTB | EDD
          • California Residency Audits
          • Discharging State Income Taxes in Bankruptcy
          • State Tax Practice – Outside of California
      • CRIMINAL TAX ISSUES
        • Criminal Investigation Division
        • IRS Criminal Investigation Division Tactics
        • Criminal Tax Defense – Tax Crimes
        • Currency Transaction Records & Suspicious Activity Reports
        • IRS Methods of Proof: Tax Fraud and Evasion
        • Methods IRS Agents Use to Locate Assets
        • IRS Special Agent Visits
        • Are You a Criminal Investigation Target?
        • Criminal Tax Attorney vs. White Collar Defense
      • CORPORATE TAXES
      • TAX COURT LITIGATION
      • Innocent Spouse Relief
    • International Tax
    • Estate Planning
    • Trust Litigation
    • Trust, Estate & Probate Litigation
    • Trust & Estate Administration
    • Probate
    • Bankruptcy
      • Bankruptcy (FAQ’s)
    • Civil Litigation
    • Criminal Defense
    • Accidents & Injury
    • Corporate & Transactional
    • Private Wealth Services
    • Real Estate Law
      • Landlord Tenant Law
    • Employment Law
  • Tax Institute
    • 10th Annual USD School of Law – RJS LAW Tax Institute
    • 9th Annual USD School of Law – RJS LAW Tax Institute
    • 8th Annual USD School of Law – RJS LAW Tax Controversy Institute – July 28th, 2023
    • 7th Annual USD School of Law – RJS LAW Tax Controversy Institute – July 15th 2022
    • 6th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 5th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 4th Annual USD School of Law – RJS LAW Tax Controversy Institute
  • Testimonials
  • Giving
    • Giving
    • RJS LAW Donates Billboard to the Girl Scouts
  • Awards
    • Awards
    • Ronson J. Shamoun at events with various dignitaries
    • SD50 Extraordinary Leadership
    • Media
    • Video Gallery
  • Blog
  • Pay
  • Contact

Leave a Comment

Tax Payment Plan Criteria: How to Get Approved

Tax Payment PlanWhen a taxpayer falls behind in their tax payment obligations, figuring how to get back on track can be a difficult prospect.  Between the limitations of a taxpayer’s capability to meet their past due taxes, and the purpose of the IRS to collect as much as possible of those same taxes, it can be a long and arduous task for the average taxpayer to dig themselves out of this situation.  How to get approved for a tax payment plan?

The IRS does have several programs available to taxpayers with past due tax debt.  The IRS must also follow certain guidelines in determining both the likelihood and the capability a taxpayer has in meeting any past due tax obligations.  By knowing these protocols, a taxpayer can limit the impact making payments will have on their current financial situation.

Installment Agreement – Tax Payment Plan

The IRS allows taxpayers to set up an installment agreement.  By filing Form 9465, the installment Agreement Request, a taxpayer agrees to pay the balance remaining within a 72 month period.   If the total amount owed is less than $25,000, then the application can be completed online.  If the balance owed is between $25,000 and $50,000 the taxpayer has the option of having the payments directly debited from a bank account, pay by payroll deduction, or filling out form 433-A, which provides personal financial information to the IRS.  Any balances greater than $50,000 require a mandatory filing a 433-A.

Offer in Compromise (OIC)

An Offer in Compromise is an offer made by a taxpayer to settle a tax debt for less than the amount the IRS is currently stating is owed. The first step a taxpayer makes in settling their tax debt is by submitting to the IRS Form 656, Offer in Compromise.  This is an application to offer a set amount, either in a lump sum payment, or in a series of payments. It consists of Form 433-A that will provide the IRS with current personal financial information; and 433-B which is used to evaluate current business financial information for business owners. Both sets of information are used to evaluate if the offer the taxpayer is giving can be approved.  The criteria the IRS uses in determining is based on the financial ability of the taxpayer to meet the obligation.  It also is based on the future earning potential of the taxpayer.

When submitting an OIC, the IRS requires that the taxpayer must be current on all IRS tax filings.  In addition, the IRS requires an application fee of $186.  If the taxpayer is asking the option to make payments in a lump sum, a payment of 20% of the lump sum must accompany the application. The taxpayer must offer the amount realized value of their assets, plus the amount that could be collected over 48 months if the installment payments are to be made within five months, or 60 months if the installment payments are to be paid in more than 5 months.  Realizable value is defined as the quick sale of an asset (90 days or less) minus the amount owed by a secured creditor.

If the taxpayer is taking the periodic payment option, then the first payment must accompany the application, and the remaining payments must be made within 24 months.  If you meet the low-income guidelines as established by the IRS, then the application fee an initial payment are not required

Time Limitation

The IRS is limited in the time period they have to collect a tax debt.  It has up to 10 year to collect the taxes from the time they are assessed.  Although there are exceptions to this amount, it can affect the amount that a taxpayer ultimately has to pay, especially when submitting an installment agreement.  If the agreement means that payments would end after 10 year collection period, the IRS would have to accept payments only until the statute of limitation time period ends.
_____________________________________________________________________
Please keep in mind the information and advice presented in this blog is not intended to be used as formal legal advice. Contact a tax professional for personalized tax advice pertaining to your specific situation. While we try and answer all parts of the question when we write our blogs, sometimes there may be some left unanswered. If you have any questions about your problems with the IRS, SBOE, FTB, or BOE, or tax law in general, call RJS Law at (619) 595-1655 to learn more about setting up a tax payment plan.

About Us

Filed Under: How-To Legal Advice Tagged With: accept irs payment plan, accepting payment plan, irs installment agreement, irs offer in compromise, irs payment help, irs payment plan, irs payment plan help, irs time limitation

RJS LAW

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Subscribe To RJS LAW

Email Address

Contact Us

  • This field is for validation purposes and should be left unchanged.

Recent Posts

  • U.S. Withdrawal from the Global Minimum Tax: Implications for Multinational Compliance and International Tax Stability
  • Understanding the Proposed $5 Million “Gold Card” Visa and Its Implications for High-Net-Worth Immigrants
  • Is the Gold Card Visa Legal? A Breakdown of the Proposal’s Path Through Congress

Categories

  • Advance Child Tax Credit
  • Asset Protection
  • Bank Fraud
  • Bankruptcy
  • Bankruptcy Attorney
  • Bankruptcy Laws
  • Beneficial Ownership Information
  • Bypass Trust
  • California AB5
  • California Payroll Taxes
  • California Sales Tax
  • Cannabis Tax
  • CARES Act
  • Cash Payments
  • Charitable Trust
  • Child Tax Credit
  • Company News
  • Contractor vs Employee
  • Contracts
  • Coronavirus
  • Court Settlements
  • COVID-19
  • CP14 Notice
  • CP504
  • CP504B
  • Cryptocurrency
  • Cryptocurrency Taxes
  • Digital Assets
  • E-Commerce
  • Economic Stimulus
  • EDD
  • EDD Audit
  • EDD Audit Penalties
  • Employee Retention Credit
  • Employment Law
  • ERTC
  • Estate Planning
  • Estate Planning Litigation
  • Excise Taxes
  • Exemption Planning
  • FBAR
  • FBAR Penalties
  • FBAR Reporting
  • Filing Bankruptcy
  • Financial Reporting
  • FinCEN
  • Foreign Bank Account
  • Foreign Bank Accounts
  • Form 105
  • Form 5471
  • Form 8300
  • FTB Audits
  • FTB Collections
  • FTB Issues
  • FTB Penalties
  • Gambling Tax
  • Gaming Losses
  • Gereration Skipping Trusts
  • Gold Card Visa
  • Guardianship
  • Hiring a tax attorney
  • Homestead Exemption
  • How to Declare the Child Tax Credit
  • How-To Legal Advice
  • Inflation Reduction Act of 2022
  • Intellectual Property
  • International Tax
  • International Tax Attorney
  • International Tax Law for Non-Profits
  • International Tax Reporting Requirements
  • IRS
  • IRS Appeals
  • IRS Audits
  • IRS Collections
  • IRS CP14 Notice
  • IRS Deadlines
  • IRS Form 8833
  • IRS Forms Explained
  • IRS Issues
  • IRS News
  • IRS Notice of Tax Lien
  • IRS Notices
  • IRS OVDI
  • IRS Penalties
  • IRS Website
  • Jobs Act
  • Levies
  • Liens
  • Lottery Taxes
  • Mail Fraud
  • Masters in Taxation – LL.M.
  • No Worries ®
  • Offer in Compromise
  • Opportunity Zone
  • Penalties for Filing Late
  • PPP Loan
  • Probate
  • Property Tax Assessment
  • Proposition 19
  • Publicly Traded Partnership
  • Required Minimum Distribution
  • Restaurant Sales Tax
  • Retaliation Claims
  • Retirement
  • Revocable Trust
  • Rewards Program
  • RJS LAW In The Community
  • Sales Tax
  • Sales Tax Audit
  • San Diego Law Firm
  • SBOE Audits
  • SBOE Issues
  • Self Employment
  • Small Business
  • Stock Buyback
  • Stock Options
  • Stock Repurchase
  • Streamlined Procedures
  • Student Loans
  • Tax and Vice
  • Tax Attorney
  • Tax Brackets
  • Tax Controversy Institute
  • Tax Credit
  • Tax Cuts
  • Tax Deduction
  • Tax Deductions
  • Tax Delinquency List
  • Tax Gap
  • Tax Institute
  • Tax Law
  • Tax Liens
  • Tax on Social Media Influencers
  • Tax Penalties
  • Tax Planning
  • Tax Rates
  • Tax Tips
  • Taxation of Rewards
  • Taxes
  • The American Rescue Plan Act of 2021
  • Third Party Settlement Organizations
  • Trust
  • Trust Litigation
  • Trusts
  • U.S. Supreme Court
  • Uncategorized
  • Unemployment
  • USD School of Law – RJS LAW Tax Controversy Institute
  • Vape Taxes
  • W-8 Forms
  • Wage Garnishment
  • Wills

Footer

Legal Resources

  • Payments
  • Services
  • Tax Law Blog
  • Video Gallery

SAN DIEGO

Map & Directions
FREE Underground parking in building

303 A Street
Suite 400
San Diego, CA 92101

Phone No.
(619) 595-1655

El CAJON

Map & Directions

900 N. Cuyamaca St., Suite 101
El Cajon, CA 92020

Phone No.
(619) 777-7700

RJS LAW Tax

Areas We Serve

– Del Mar
– Coronado
– La Jolla
– La Mesa
– Chula Vista
– Escondido
– San Marcos
– Carlsbad
– Oceanside

 


©2025 | RJS LAW Firm | All Rights Reserved | Privacy Policy