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Tax Planning/Tax installments to IRS


After getting my Chap 7 discharge and getting my house foreclosed last year, I will have around $20,000.00 due to IRS on rental property for many years of for past depreciation.  our AGI will be around $50,000.00 before the $20,000.00 due is taken into account.

I can't come up with so much tax debt this year. If the IRS rejects an offer and compromise, is there such a thing as a  tax payment plan, such as three to five year tax payment plan that my tax professional can search for me?.

Will -

You ask a couple of questions that need a little bit of explaining on my part.  An offer-in-compromise acceptance is a very rare occurrence.  It is lengthy and often is rejected by IRS.  I could go into the particulars on that subject, but just know it is a very challenging situation to get one accepted.

That being said, of course your tax professional can work out a plan of repayment with IRS.  Under the Fresh Start Initiative, as long as you can reasonably expect to pay back the debt over a 72 month period (and the payments are direct debited from your bank account), the provision is automatic.  There would be no financial statements required from you.

I hope this answers your questions.

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As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.


I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

National Association of Tax Professionals


Enrolled Agent, Admitted to Practice Before the IRS, Accredited Tax Preparer, Fellow of National Tax Practice Institute, Certified QuickBooks ProAdvisor (1999-2011), Sleeter Group Certified QuickBooks Consultant, Life & Disability Insurance Agent License (California, Texas, Maine), Real Estate Agent License (California); Many years of continuing education in all these fields.

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