Tax Law Insights

By Jennifer L. Rath, Enrolled Agent

If a taxpayer owes federal taxes, but does not have the financial ability to pay these taxes in full, the taxpayer can apply for a payment plan with the IRS to pay these taxes, and usually on a monthly basis.    However, depending on the amount of taxes owed, the IRS may require the taxpayer to submit detailed financial information in order for the IRS to evaluate a suitable monthly payment.    For this purpose, the IRS requires a taxpayer to prepare and submit a Collection Information Statement (CIS), typically through a Form 433, and with supporting financial ...