Nobody likes owing the IRS money – and when the amount you owe seems insurmountable, it’s easy to feel overwhelmed. Fortunately, you have the option to pay it off on a monthly basis with an IRS installment agreement.
How Can I Pay My Tax Deb in Installments?
Setting up an IRS payment plan gives you the opportunity to chip away at your large back tax bills with monthly payments over a period of time, rather than having to pay one lump sum. This is especially helpful if you’ve been denied an offer in compromise or other form of tax liability relief.
If you’ve neglected to file your tax return in a previous year or you’re not current with your estimated tax or payroll tax deposit requirements, the IRS may not be willing to negotiate. Having a professional tax attorney on your side can help explore your options.
Types of IRS Payment Plans for Taxes
When requesting an IRS installment agreement, you’ll have to disclose details about your income and assets. Depending on your situation, you may be granted the following:
Short-term IRS payment plan – You must pay the amount owed in 120 days or less. Only individual taxpayers can apply for this type of relief.
Long-term IRS installment agreement – You pay the amount owed in more than 120 days with monthly payments.
Once the agreement begins, you must remain in full compliance and pay all future taxes on time. Fail to do so, and the IRS may file a tax lien. You should consult with a Tomes attorney to explore your obligations and responsibilities and ensure you have a full understanding of your options and responsibilities. Contact us today to get your IRS payment plan started!