PAYMENT PLANS
“An IRS Installment Agreement, or payment plan, is a great way, and generally much easier way, to bring your account back into good standing to avoid enforced collection action taken against you. There are a lot of flexible plans available with the IRS, and some types can even be tailored to be based on your financial ability to repay, even if it’s a very small payment."
-Greg Daer
Payment plans are underrated — very few people ‘want’ a payment plan, but they can be a GREAT option to consider.
If you can’t afford to pay back the IRS in full or pay the minimum monthly payment amount that the IRS is requesting from you, we can help you explore resolution programs based on YOUR financial ability. We’ll explore a smaller Installment Agreement on your behalf.
There are different types of Installment Agreements: some require a financial disclosure to the IRS, others do not. Sometimes, depending on your financial ability and the balance owed, you can simply request an Installment Agreement online via your IRS portal. Generally, if you need to disclose financials, the IRS files tax liens to secure their interest in the tax debts owed.
The IRS cannot collect on a tax bill indefinitely. Generally, with some exceptions, they have 10 years from the date that the tax is assessed to collect on a period of tax liability. This is called the Collection Statute Expiration Date (CSED). Certain actions can suspend/freeze the CSEDs, such as filing for bankruptcy, filing an Appeal, or filing an Offer in Compromise. So, don’t agonize if your financial ability doesn’t allow you to ‘full-pay’ the IRS back taxes owed. The IRS can consider this, and even allow (if you qualify) for something called a Partial Pay Installment Agreement, which is based on your financial ability to repay. We can help you go over the pros/cons to this type of resolution option.
We can help go over some options for you to see if an Installment Agreement is a good option for you to consider, and, we’ll talk to the IRS so that you don’t have to.