IRS Tax Payment Plans
Owe back taxes to the IRS and can't afford to pay the amount in full? Many people believe that the IRS will not work with taxpayers, and that the only way you can get out of tax debt is to pay your debt in full. However, it is possible to set up a payment plan with the IRS, making monthly installments on your debt.
How can you start a payment plan with the IRS? The first thing you will have to do is file all of your past tax returns, so that your filings are up to date. Once you have done this, you will be able to ask the IRS to set up an installment plan for you to pay off your delinquent tax debt and any associated penalties.
IRS Installment Agreements
The IRS will determine how much you can afford to pay based on your income and expenses, and will also determine the time frame for the plan depending on how much of your debt you can afford to pay off monthly. Depending on your situation, it may even be possible for the IRS to settle the total amount you owe for less, meaning less time making monthly tax payments.
Setting up a payment plan with the IRS means a stop to any collection phone calls, mailings, or visits from IRS revenue officers. If you make timely payments, you will not be in danger of receiving a levy or lien on your personal property. However, it is important to note that you will be paying interest on the balance of your tax debt, and the IRS will continue to assess penalties until your debt is paid in full.
To stay on your payment plan with the IRS, you must file your taxes in compliance with federal tax regulations in all future years.
If you are struggling with tax debt, and need to set up a payment plan with the IRS to pay off your debt, you need the experienced team at Itri & Co on your side. Itri & Co has 27 years of experience dealing with the IRS, and knows how to get you set up with an installment plan that you can afford.