You can be in a streamlined monthly installment plan to pay back income taxes even if you owe the IRS a lot of money. But should you be?The IRS “Streamlined Installment Agreement”
Under its “Fresh Start” initiative, started in 2008 during the Great Recession and expanded two years ago, the IRS allows the following:
If a taxpayer owes $50,000 or less to the IRS in tax, interest and penalties, he or she can enter into a monthly installment plan to pay the debt. That maximum dollar amount was increased in 2012 from the previous $25,000.
A tax lien recorded before you file bankruptcy can force you to pay taxes you may otherwise not pay. You can prevent that lien recording.
Bankruptcy can prevent one of the most dangerous actions that a creditor can take against you. This action is so dangerous not because of its immediate effect—like a garnished paycheck or repossessed vehicle—but rather because of its very expensive permanent effect.
The recording of a tax lien by the IRS (and/or state taxing authority, where applicable) is so potentially expensive because it can convert a tax debt that could possibly have been discharged (permanently written…