IRS Payment Plan & Offer in Compromise in Teaneck, NJ
When a Teaneck taxpayer owes more to the IRS than they can pay in full, two of the most important resolution tools available are an installment agreement — a formal payment plan — and an offer in compromise, which allows eligible taxpayers to settle their tax debt for less than the full amount owed. Both require a structured application process and a thorough understanding of IRS procedures. Tsamutalis & Company guides Teaneck clients through both, maximizing the chance of a favorable outcome.
IRS Installment Agreements for Teaneck Taxpayers
An IRS installment agreement allows you to pay your tax debt over time in regular monthly payments. For Teaneck taxpayers who owe a manageable balance, a streamlined installment agreement can be established relatively quickly. For larger balances, a full financial disclosure may be required to determine an affordable payment amount. Tsamutalis & Company negotiates installment agreements for Teaneck clients at the most favorable payment terms available given their financial circumstances. Because the IRS generally requires all returns to be filed before approving a payment plan, our non-filed returns and back taxes services can get you compliant first.
Offer in Compromise: When Less Than Full Payment Is Possible
An offer in compromise allows eligible taxpayers to settle their federal tax liability for less than the full amount owed. The IRS considers offers based on the taxpayer’s ability to pay, income, expenses, and asset equity. Not every Teaneck taxpayer qualifies — the IRS rejects offers that do not reflect the most the government can reasonably expect to collect. Tsamutalis & Company evaluates each client’s financial situation before recommending whether an offer in compromise is viable, prepares a compelling and complete application, and negotiates with the IRS on the client’s behalf.
Currently Not Collectible Status
For Teaneck taxpayers experiencing genuine financial hardship, currently not collectible (CNC) status is another option. When the IRS determines that a taxpayer cannot meet basic living expenses and also pay their tax debt, it can temporarily suspend collection activity. CNC status does not resolve the underlying debt, but it stops collection actions — including levies — while the taxpayer’s situation improves.
NJ State Tax Resolution
New Jersey has its own collection process for unpaid state taxes, separate from the IRS. Teaneck taxpayers with both federal and NJ balances need resolution at both levels. Tsamutalis & Company handles NJ Division of Taxation installment agreements and other state-level resolution alongside federal matters, ensuring both issues are addressed in a coordinated way. Have questions about your situation? Contact our Bergen County CPA team to talk it through.
FAQs
Qualification depends on your ability to pay, your income, your expenses, and the equity in your assets. The IRS uses a specific formula to determine the minimum offer it will accept. Tsamutalis & Company evaluates Teaneck clients against these criteria before recommending whether to file an offer — an offer that does not meet the IRS's threshold will be rejected, and the application fee is not refunded.
Disclaimer: This content is for informational purposes only and does not constitute tax or financial advice. Consult a qualified tax professional for guidance specific to your situation.