What You Need to Know about Your IRS Payment Plan Options

Do you owe the IRS back taxes?    If you owe the IRS back taxes and do not have the ability full pay the liability, then you need to consider an IRS payment plan. There are several different IRS tax payment plan options based on your specific situation.

If you owe $50,000 or less and have the ability to make monthly payments for 72 months, then you may qualify for a streamline installment agreement.

If you owe more than $50,000 or cannot financially make the necessary monthly payments to fully pay your tax obligation under a streamline installment agreement, then you will need to submit a financial statement to the IRS showing your ability to pay. Under these circumstances, the IRS will look at your income, expenses and equity in assets in determining your ability to make payments. Based on your financial situation you may be able to enter into 1) full pay installment agreement- where you will full pay the account over the life of the statute of limitations or a 2) a partial pay installment agreement- where you pay an amount less than what you owe the IRS over the life of the IRS’ statute of limitations.

Knowing your IRS payment plan options is critical when dealing with the IRS.   Our law firm, negotiates payment plans for our clients with the IRS.   Please call our office at (888) 346-5470 for a FREE consultation.