Should I Strike First or Should I Wait on the IRS?
Question: Is it better to set up an installment agreement with the IRS or just wait for a letter?
Answer: Thanks for the question. I think it is always better to be proactive when it comes to the IRS, but the situation always dictates what you should do. I always like to point out that as long as you owe the IRS money penalties and interest are accruing. The sooner you take action to resolve your liability, the sooner you can get out of trouble with the IRS and the more money you will save for yourself rather than spending it on interest to the IRS.
If you don’t owe a lot of money, setting up an installment agreement with the IRS isn’t too difficult and is usually just a phone call away. If you owe a substantial amount, you should definitely consider having a CPA or attorney help you with getting the payment plan set up so you don’t get taken to the cleaners.
Finally, as a disclaimer, I need to do my ethical duty as an attorney and let you know that this blog is meant to provide general tax and legal information and not specific information for your particular situation. You should always consult a competent attorney or tax professional to discuss the specifics of your case.