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Temporary Suspension of Payments Due to Inability to Pay

There are three tools at your disposal if you find you cannot pay your taxes:

  1. You can arrange a payment plan,
  2. Make an Offer in Compromise or,
  3. Obtain a postponement to pay.

The third option is best when you do not qualify for an Offer in Compromise but yet find yourself with the inability to pay off your tax bill on a monthly basis.

The IRS has announced a number of steps to help those who are facing such financial difficulties. Depending on the circumstances, these individuals may be able to adjust payments for back taxes, avoid defaulting on payment agreements, and possibly defer collection action. There are many situations in which IRS employees have been given more flexibility to assist struggling taxpayers, such as:

  • The postponement of collection actions;
  • Allowing a skipped payment or a reduced monthly payment amount without automatic suspension of an Installment Agreement;
  • An additional review for offers in compromise on home values;
  • Prevention of offer in compromise defaults;
  • Eased requirements for expedited levy releases; and
  • More options for those taxpayers unable to pay their tax liability.

If you feel a temporary deferment of payment is best given your economic circumstances please contact our office and we can help you determine if you meet the IRS’ criteria for this type of concession.