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  • Brian Barto, EA

Resolving Back Tax Debt: Choosing your Collection Alternative



We work with clients in Winchester, VA and Martinsburg, WV that owe back taxes to the IRS. The most important thing you can do if you have IRS, or state, tax debt is to deal with it. Sticking your head in the sand and hoping it will go away is usually a bad strategy. There are several collection alternatives available to you. These are the 3 options most commonly used to address your tax debt issues.


Installment Agreement: Generally, if you have the ability to “full-pay” within 72 months or the time remaining on the collection statute time period (10 years), you will be expected to pay in full. The payment terms on an installment agreement can be up to 72 months. Depending on the Collection Statute Expiration Date (CSED) the term might be less. The CSED is the 10-year deadline for the IRS to collect the debt. The 10-year period starts on the day the tax is assessed.


There are several different types of Installment Agreements. Based on new rules recently issued by the IRS, many taxpayers will qualify to apply for...




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