Montgomery-Wetenkamp`s tax lawyers offer tax breaks and can help taxpayers solve their tax problems. For more information on IRS tax relief or other tax matters, please contact Montgomery and Wetenkamp at (800) 454-7043 or firstname.lastname@example.org. When a tax payer is unable to pay his taxes when due, the Internal Revenue Service (IRS) enters into a temperate agreement and accepts monthly payments until the tax is paid in full or until the limitation period expires. There are three primary fixed-rate payment methods: mail in a cheque, electronic money withdrawal (levy) and wage deduction. The second page of the employer copy is the most interesting. The employer is encouraged to „continue to make payments, unless the IRS notifies [the employer] that the liability has been met.“ Of course, this could affect the taxpayer. First, the likelihood of the IRS informing the employer in a timely manner is not very high. The form itself confirms this by stating: „If the amount due is fully paid, as shown on the form, and the IRS has not informed you that the liability has been completed, please call the corresponding telephone number below to request the balance due.“ Second, if the taxpayer`s financial situation changes and he is unable to pursue the agreement in a temperamental way, it may be difficult to terminate the IRS wage deduction agreement. Under the new IRS guidelines, a tax guarantee fee can be released by entering into an automatic debit contract, provided the overall balance is less than or equal to $25,000. But if a taxpayer does not meet these criteria or does not care about the tax guarantee, then payment of staggered payments by cheque may be the best method, because if the taxpayer is no longer able to continue to send payments, he simply stops sending payments and other options can then be discussed with the IRS. A taxpayer cannot expect that the stoppage of payments will have no consequences (the least of which would be an insolvent temper contract), but sometimes the taxpayer has no choice.
B, for example, if it suffers a sharp drop in wages or a total loss of a source of income. Some of the IRS tax problems we are discussing here can be avoided by choosing monthly e-mails in temperate payments. The taxpayer can initiate the collection method directly on Form 9465 or Form 433-D, but a wage deduction agreement requires the use of a separate form: Form 2159. There are a few potential pitfalls that are related to this form that taxpayers need to know about. One of them is the „increase/reduction“ clause – you don`t want the IRS to increase your payment amount unless you have agreed. Another potential pitfall is the „additional term box“ – additional terms would almost never be in the taxpayer`s favour, especially since this field „must be supplemented by the IRS.“ Form 2159 consists of three parts: the confirmation copy (which must be returned to the IRS), the employer`s copy and the taxpayer`s copy. The cover of each copy is the same. However, there is a second page of instructions for each copy, which contains different information. The second page of the IRS copy contains a list of internal codes and numbers.
The second page of the taxpayer`s copy contains some fairly redundant instructions on how to complete the form and what to do after it is completed.