Help with Phoenix AZ IRS Payment Plan

Phoenix AZ IRS Payment Plan Success Story – How Scott Allen EA Helped Teresa Resolve Her IRS Debt

When taxpayers fall behind with the IRS, the stress and uncertainty can feel overwhelming. Letters from the IRS begin to pile up, and bank accounts or paychecks can suddenly be at risk for garnishment or levy. Fortunately, for many Arizona taxpayers, help is available. One recent success story comes from Scott Allen EA of Tax Debt Advisors, Inc., who helped a client named Teresa secure a manageable IRS payment plan in Phoenix, AZ—bringing her much-needed financial peace of mind.

Understanding the Situation: Teresa’s IRS Problem

When Teresa first reached out to Tax Debt Advisors, Inc., she was anxious and unsure of where to turn. She had fallen behind on multiple years of tax filings and owed balances for several tax periods, including 2017, 2018, 2020, and 2022. The IRS had already sent numerous notices demanding payment, and Teresa feared that her wages or bank accounts could soon be garnished.

After seeing the professional reputation and local family roots of Scott Allen EA in Mesa, Teresa decided to hire him as her representative before the IRS. Scott’s firm has specialized in helping individuals and small business owners throughout the Phoenix metro area with tax debt resolution, back tax return preparation, and payment plans for over four decades.

What Is an Enrolled Agent (EA)?

Before diving into Teresa’s case, it’s important to understand what an Enrolled Agent (EA) is. An EA is a federally licensed tax practitioner who has earned the highest credential the IRS awards. Unlike CPAs or attorneys who are licensed by individual states, Enrolled Agents are authorized by the U.S. Department of the Treasury to represent taxpayers in all 50 states before the IRS.

EAs specialize exclusively in taxation—covering everything from tax preparation to audit defense and settlement negotiations. They have unlimited practice rights, which means they can handle any kind of IRS matter: collections, audits, or appeals.

In short, hiring an Enrolled Agent like Scott Allen EA gives taxpayers direct representation before the IRS—without having to face the agency alone.

How Scott Allen EA Helped Teresa Establish an IRS Payment Plan

After being hired, Scott immediately filed a Power of Attorney (Form 2848) with the IRS, officially authorizing him to speak on Teresa’s behalf. This was a crucial first step. With this authorization in place, all IRS contact went directly through Scott—stopping the stress and confusion of constant notices and phone calls.

From there, Scott began the process of reviewing Teresa’s IRS account transcripts and verifying exactly what years were unfiled and what balances were still owed. Once everything was confirmed, Scott worked directly with the IRS’s Memphis, TN service center to ensure all of Teresa’s tax periods were correctly included in one unified payment plan.

The attached IRS letter dated August 4, 2025, confirms that the IRS accepted Teresa’s updated installment agreement. The letter specifically states that the tax periods for 2017, 2018, 2020, and 2022 were added to her existing plan. The IRS agreed to continue deducting a manageable monthly payment of $290.00 directly from her checking account on the 14th of each month.

This was a tremendous victory. Not only did Scott Allen EA stop any potential collection actions, but he also helped Teresa achieve long-term financial stability by setting up a payment plan that fit her budget.

Phoenix AZ IRS Payment Plan Agreement

Stopping IRS Collections and Protecting Assets

For many clients like Teresa, the biggest fear is IRS enforcement—wage garnishments, bank levies, or even property liens. When taxpayers owe money and don’t respond, the IRS has broad authority to collect. However, once a taxpayer enters into an approved IRS payment plan, all enforced collection activity must stop.

By negotiating this installment agreement, Scott Allen EA ensured that Teresa’s income and bank accounts were protected. The IRS agreed not to pursue any further collection actions as long as she made her agreed-upon monthly payments.

This result is not only financially beneficial but emotionally freeing. The burden of IRS debt can take a serious toll on mental health and family relationships. Teresa finally had peace of mind knowing that she was in compliance with the IRS and no longer at risk of surprise collection actions.

Phoenix AZ IRS Payment Plan Options Explained

For Arizona taxpayers struggling with IRS debt, there are several types of payment plans (installment agreements) available:

Guaranteed Installment Agreement – For balances under $10,000, taxpayers may qualify for an automatic plan without financial disclosure.
Streamlined Installment Agreement – For balances under $50,000, the IRS often approves monthly payment plans up to 72 months.
Partial Payment Installment Agreement – For taxpayers unable to fully pay their debt, this plan allows smaller monthly payments that may not cover the full balance before the statute of limitations expires.
Currently Not Collectible (CNC) Status – In severe hardship cases, the IRS can temporarily suspend all collection activity.

Scott Allen EA reviews each client’s financial situation carefully to determine which payment plan option provides the most affordable and realistic path forward.

The Importance of Filing Back Tax Returns

Many taxpayers who owe back taxes also have unfiled tax returns. In fact, the IRS will not approve most payment plans until all required returns are filed. That’s why Scott Allen EA and his team at Tax Debt Advisors, Inc. specialize in preparing and filing back tax returns—even for multiple years.

For Teresa, ensuring that all prior-year tax returns were filed was a key part of the process. Once the IRS had complete information, it could properly assess her balance due and allow her to enter a compliant payment agreement.

Filing back tax returns not only brings taxpayers current but also helps them claim any refunds or credits they may have missed. Many clients discover that filing old returns actually reduces their total balance once all accurate deductions and credits are applied.

Why Choose Tax Debt Advisors, Inc.

Tax Debt Advisors, Inc. is a family-owned and operated firm based in Mesa, Arizona, proudly serving taxpayers across the greater Phoenix metro area. Founded over 45 years ago, the company has built its reputation on honesty, personalized service, and successful IRS resolutions.

Led by Scott Allen EA, the firm handles everything from unfiled returns and audit representation to payment plans and Offer in Compromise settlements. Every case is handled personally—no national call centers or cookie-cutter approaches.

Clients appreciate working with a local expert who knows how the IRS operates and has established relationships with IRS offices in Phoenix, AZ and across the Southwest.

The End Result: A Fresh Start for Teresa

Thanks to Scott Allen EA’s persistence and expertise, Teresa’s IRS nightmare finally came to an end. The IRS payment plan officially documented in the August 2025 letter provided the structure she needed to pay off her tax debt over time—without fear of levies, garnishments, or new penalties.

Today, Teresa is back on track, staying current with her tax filings and making steady progress toward full resolution. Stories like hers show that, with the right professional help, even serious IRS problems can be solved.

Get Help with a Phoenix AZ IRS Payment Plan

If you or someone you know is facing IRS debt, unfiled tax returns, or collection notices, don’t wait. The sooner you take action, the more options you’ll have.

Contact Scott Allen EA of Tax Debt Advisors, Inc. today to schedule a free initial consultation. As an Enrolled Agent, Scott can represent you directly before the IRS, stop collections, and negotiate a payment plan that fits your budget.

Whether you need help filing back tax returns or setting up a Phoenix AZ IRS payment plan, Scott Allen EA has the experience and local expertise to get you back in compliance and back to peace of mind.

Tax Debt Advisors, Inc.
3155 E Southern Ave, Ste 101
Mesa, AZ 85204
📞 (480) 926-9300
🌐 www.TaxDebtAdvisors.com

Helping Arizona taxpayers resolve IRS problems since 1977.