Here's the deal...
you owe back taxes to the IRS.
You don't qualify for any special programs to reduce the debt you owe, so the IRS has offered to set you up in an Installment Agreement monthly payment plan.
You can now pay off your tax debt just like you would with a credit card.
Things with the IRS are never that simple.
A world of pain...
The first thing you need to know is that an IRS payment plan is not going to be to your advantage.
Your "minimum" payment is going to be high, and may not even be possible for you to maintain.
So what is the framework for an Installment Agreement with the most powerful collection agency in the World?

• The IRS determines what your paymentwill be.
  How do they dothis?Theytake how much money you have coming in, then deducts your "basic" livingexpenses.
  And these are so basicthat several of your important bills are not even considered as basic suchas credit card payments, payments on luxury items like boats, private schoolfor your kids, etc...
  The IRS thentakes your income minus your basic living expenses and the remainingamount is what you have to pay them each month.
  
• Speakingof paying them each month, they are serious about you paying on time eachmonth.
  You can't make partialpayments, your payments can not be late, and don't even think aboutskipping a payment.
  
• If youfail to make a payment, and the IRS doesn't care why, you are in defaultof your payment agreement.
  The IRSmay let you slide once, but a second time guarantees that an IRS-Hitmancomes for your assets, your bank accounts, everything.
  
• Youcan also default through no fault of your own.
  If you owe taxes for a year that you'rein a payment plan you automatically default and have to negotiate a newplan immediately.
  
• Interestand penalties constantly add on to the debt, so if your payments are lessthan the amount of interest you won't see that debt go down, and that isfrustrating.
  
• Ifyour financial situation improves, such as you get a raise at work, thenthe IRS knows about that and demands a new higher payment.
  

Here are the facts: 97% of all Installment plans fail.
The IRS wants you to default.
Why? So they can collect their money faster by garnishing your wages and seizing your accounts and assets.
Get the smoking gun in part 2