As a CPA, tax professional, or enrolled agent, efficiently addressing your clients’ tax concerns is a top priority. That’s where IRS resolution software comes into play, transforming the way you handle Installment Agreements (IAs) and streamlining the entire process. In this insightful article, we’ll explore the numerous advantages and capabilities of using cutting-edge IRS resolution software to optimize your workflow, enhance your services, and ultimately, deliver the best possible outcomes for your clients. Join us as we delve into the world of advanced tax resolution technology and uncover the tools that can empower your practice to effectively manage and resolve IRS-related issues with confidence and precision.
If your client owes money and can’t full pay the tax when filing their tax return, consider a streamlined installment agreement. The IRS has relaxed the installment agreement process over the last few years. If a client owes less than $50,000 in tax they may qualify for the streamlined IA. Consider having the taxpayer pay down the balance below $50,000 to qualify for the streamlined IA. The main benefit to doing so is to avoid having to fill out a full collection financial statement form 433-A. The 433-A collection financial statement is 6 pages long and requires entering all of the taxpayers income sources, accounts, and assets. This can be a burden on the taxpayer and tax pro. If you need to fill out a form 433 consider using an IRS tax software like IRS Solutions.
The streamlined installment agreement requires the taxpayer to make payments equal the tax owed divided by 72 months. So for the taxpayer who owes $50,000 this would be roughly $700/month. If the taxpayer is unable to afford the $700/month amount they would need to fill out the 433-A to request a lower payment.
If this is the case their are other options available to the taxpayer such as offer in compromise or currently not collectible. We created IRS tax software to help tax pros give their clients the options available to them in an easy to use format. If you decide to go one of these routes you would be required to change to a different 433 form and start over. Our IRS tax software transfers the data you entered into all of the 433 series forms for you.
