For taxpayers who cannot pay their IRS tax debt, the path is hard. However, there are IRS payment options available to take care of your troublesome tax issues. You can choose an IRS payment arrangement from the numerous IRS payment options offered. The IRS payment agreement you qualify for will depend on your financial situation and the amount you owe in back taxes.
There are many different IRS payment options, but the most common IRS payment arrangements are an Installment Agreement, a Partial Payment Installment Agreement, and Hardship Status, or also known as Currently Not Collectible.
IRS Payment Plan: Installment Agreement
If you owe less than $25,000 in back taxes, and have the means to pay a monthly IRS payment, entering into a 60-month IRS payment program should be no problem. The IRS will simply divide your entire debt into 60 IRS payment installments over five years. During this time, your debt will still accrue penalty and interest charges, so it is always suggested to pay the IRS debt in full if you can.
To learn the qualifications and procedures of arranging an Installment Agreement, visit our IRS Installment Agreement page.
IRS Payment Plan: Partial Payment Agreement
If your Statute of Limitations is about to end, the IRS wants to collect as much as it can from you, sometimes doubling your monthly IRS payment amount. By providing the proper documentation showing you are unable to pay the remainder of your tax debt balance within the statute time, you may qualify for a Partial Payment Agreement. With this IRS payment option, you will be able to potentially pay less than what you owe in back taxes.
For further details about the Partial Payment IRS Agreement, visit our Tax Settlement page.
IRS Payment Plan: Hardship Status
If your financial documentation proves that you are unable to pay the taxes you owe at this time and you have exhausted all other resources, the IRS may agree to place you in an IRS payment agreement called Hardship Status. This agreement actually collects nothing on your debt. Also, the IRS will not be able to collect money towards your debt through means of a bank or wage levy. This IRS payment arrangement will be reviewed every two years, and the statute of limitations does not pause while in this status.
Visit our Currently Not Collectible page for more information on how to apply for this Hardship IRS payment program.
In order to qualify for any of the IRS payment methods listed, you must provide ample documentation to the IRS. Proving your case can be quite hard. Find an IRS payment specialist that can help you prepare your application for one of these IRS payment programs.
Call now or fill out the form below for a free consultation about the best IRS payment program for your tax issue. We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.