How to Set Up a Payment Plan with IRS
  • November 3, 2020
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Every year, the annual report of the National Taxpayer Advocate to Congress identifies at least 20 serious IRS tax problems faced by taxpayers. Some of the issues significantly affect the way taxpayers pay taxes and receive refunds, even if they do not involve disputes with Uncle Sam. As the voice of taxpayers, the National Taxpayer Advocate sends an annual report to the IRS with the aim to elevate these IRS issues and recommend permanent solutions. Continuing further, in this blog post, we look at four of the most serious IRS problems faced by taxpayers. Read on!

1. Tax Law Questions

In 2014, the government implemented a policy of answering questions related to tax law only during the filing season, ie. from the month of January to mid-April. The IRs justified this change in policy as a step towards cost-savings during a time of budget constraints. This change eroded taxpayers’ rights and undermined their confidence in the IRS as there were many tax situations round the year about which they needed help. This 3.5 months short window to ask questions forces them to take help related to IRS problems from third-parties, which further frustrates them and, as mentioned before, results in eroded confidence in the IRS.

Related Blog: 7 IRS Offer In Compromise Tips You Must Follow to Avoid Rejection

2. Navigating the IRS

Taxpayers have often faced issues in locating the right people at the IRS who can provide accurate information regarding their IRS issues. The agency asks taxpayers to call on its main toll-free number which includes many options that are difficult-to-interpret and often lead to confusion and extended hold times. If the taxpayers, in some cases, get the phone number specific to a particular branch, most often they are for a group, rather than an individual employee, making it difficult to have a sense of continuity and rapport with a single individual working on their case.

3. False Positive Rates

The IRS’s detection systems sometimes generate long processing times and false positive rates (FPRs), which increases the taxpayer’s burden, creates TAS cases, and generates phone calls to the IRS. There are many policies that affect the taxpayer’s ability to receive refunds on time, including the failure of the IRS to capture important information to evaluate the efficiency and accuracy of its IDT and non-IDT refund fraud programs; IRS’s past failure to look at the third-party information on regular basis, and its failure to implement systemic verification in its detection systems.

Related Blog: 5 Types of IRS Installment Agreement to Pay Your Tax Debt

4. Economic Hardship

Economic hardship occurs when someone is not capable of paying for expenses necessary for living. Although Congress asks the IRS to pause on some collection actions such as levy if a taxpayer is suffering from economic hardship, the federal tax agency is not proactive in locating such individuals throughout the collection process. The IRS has no systematic alert system that can tell its tax collection employees that a particular taxpayer is at the risk of economic hardship so that they can determine the appropriate collection method. As a result, taxpayers enter into installment agreements (IAs) that they cannot afford and unnecessarily get into disputes with the IRS.

Wrap Up

Although all these IRS issues are common among taxpayers, there are specific procedures that can help you solve issues including taking advantage of IRS tax relief. All you need to do is to seek assistance from a professional tax attorney who can analyze your IRS issues and advise on possible solutions. If you need help with any IRS issues in Texas, reach out to the Law Offices of Nick Nemeth’s team of seasoned IRS tax attorneys in Dallas, Texas. For a free and no-obligation consultation, simply call (972) 426-2553 or fill out our contact form and we will take it from there.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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