First Things First: File Accurately Before You Choose

Payment and settlement options are math problems. The IRS approves or rejects based on verified income, expenses, and equity. That means you must file accurate returns first. Guesswork hurts you; clean books help you.

• Transcripts: Confirm all income the IRS sees (W-2s/1099s/1098s).
• Books: Reconcile QuickBooks or Xero; fix categorization; support every figure.
• Returns: Replace SFRs with real returns; sequence filings to avoid account conflicts.

Plantation, Sunrise, Tamarac, Davie, and Fort Lauderdale residents face the same federal rules. Accuracy is your leverage.

Installment Agreements (IA): Predictable Cash Flow

An Installment Agreement spreads your balance over monthly payments. It’s the fastest route once filings are current and numbers are verified.

• Best for: Steady income; ability to pay monthly after essentials.
• Pros: Quick to set up; stops most enforcement; simple compliance requirements.
• Cons: Interest and some penalties continue until paid.

Key IA Variations

• Short-Term Payment Plan: Full pay within the near term; minimal paperwork.
• Streamlined IA: Balance under certain thresholds; limited financial disclosures.
• Non-Streamlined IA: Higher balances; more documentation; may require financials.

Offer in Compromise (OIC): Settle for Less—If You Qualify

OIC can settle for less than owed, but it’s strict. The IRS compares your reasonable collection potential (RCP) to what you offer. Low income + low equity can qualify; strong income or equity often disqualifies.

• Best for: Long-term inability to pay full balance; verified hardship.
• Pros: Potentially closes the case for less.
• Cons: Documentation-heavy; strict compliance required after acceptance.

What the IRS Scrutinizes

• Monthly disposable income: Income minus allowable expenses (IRS standards apply).
• Equity: Home, vehicles, bank accounts, investments, business assets.
• Future compliance: You must stay current after acceptance or risk default.

Currently Not Collectible (CNC): Hardship Pause

CNC places collections on hold when you have no ability to pay after necessary living costs. Balances remain; interest accrues; the IRS may review later.

• Best for: Temporary or ongoing hardship with no disposable income.
• Pros: Stops levies and garnishments; provides breathing room.
• Cons: Interest continues; status can change if finances improve.

CNC isn’t a settlement—it’s a protection status. We still file accurately and keep you compliant.

Side-by-Side Comparison: IA vs. OIC vs. CNC

How QuickBooks & Xero Drive the Decision

Every option hinges on verified numbers. Clean ledgers prove income and expenses, support reasonable-cause penalty relief, and prevent double-counting. We align ledgers to returns and returns to financial disclosures.

• Reconciliations: Tie out every month to bank/credit statements.
• Expense mapping: Categorize to IRS-allowable buckets; avoid misc. dumping.
• Assets: Identify equity accurately; apply depreciation correctly.

Sequencing Matters: Years, SFRs, and Refund Timelines

File the earliest viable year first, replace SFRs promptly, and prioritize years at risk of refund loss. Proper sequencing speeds account corrections and reduces notice traffic.

• Transcripts guide scope: Confirm which years the IRS expects.
• Replace SFRs: Real returns usually lower assessments.
• Refund statute windows: Don’t forfeit refundable credits by waiting.

Pitfalls & Red Flags That Sink Applications

• Unfiled returns: No plan is approved until filings are current.
• Inflated expenses: The IRS uses national/local standards—unsupported numbers get cut.
• Hidden equity: Omissions can derail OIC/CNC and trigger deeper scrutiny.
• Defaulting after approval: Missed payments or new non-filing restarts enforcement.

FAQ: Payment Plans & Settlements in Plantation, FL

Can I apply for a plan before I file?

No. The IRS requires current filings before approving most resolutions. File first, then pick the plan.

How do I know if I qualify for an OIC?

We calculate reasonable collection potential using verified income, allowable expenses, and equity. If RCP exceeds the balance, OIC is unlikely.

Will CNC erase my debt?

No. CNC pauses collection due to hardship. Interest accrues; the IRS may review later if finances improve.

What happens if I default on an IA?

Enforcement can resume. If cash flow changes, we renegotiate quickly to avoid levies or garnishments.

Which option saves the most money?

It depends entirely on your verified numbers. We run side-by-sides after books and returns are accurate.

Helpful Articles & Internal Resources

• • File Back Taxes in Plantation, FL — Pillar Page
  • How to File Back Taxes in Plantation, FL – Step-by-Step Guide
  • What Happens If You Don’t File Back Taxes in Plantation, FL?