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IRS Offers Several Ways To Pay Off Delinquent Tax Debt

IRS Tax Fighters • March 7, 2023

It's no secret that millions of taxpayers struggle to pay their taxes. The IRS is unyielding when it comes to collecting money, so if you're facing back taxes owed, the federal government highly advises seeking assistance as soon as possible before they resort to aggressive measures like taking money out of your bank accounts and seizing wages or property.


The IRS offers several different installment agreement payment plans to help taxpayers pay off their tax debt. These plans include:


1. Guaranteed Installment Agreement: This plan is available to taxpayers who owe $10,000 or less in taxes. The taxpayer must agree to pay the debt in full within three years and must have filed all required tax returns. No financials are required.


2. Streamlined Installment Agreement: This plan is available to taxpayers who owe $50,000 or less in taxes. The taxpayer must agree to pay the debt in full within 72 months and must have filed all required tax returns. You do not need to provide financial information to the IRS.


3. Partial Payment Installment Agreement: This plan is available to all taxpayers who owe taxes and qualify. The taxpayer must agree to pay a portion of the debt over the statutory period which remains on the account, generally within 10 years of date of assessment and must have filed all required tax returns. Full financial disclosure is required and most likely a lien will be filed.
4. Extended or Flexible Payment Plan: This plan is available to taxpayers who owe up to $250,000 in taxes and are unable to pay the debt within 72 months. The taxpayer must agree to pay 100% of the debt over a longer period of time, up to 120 months. No financial information is required, however, a lien may be filed.

5. Currently Not Collectible: This plan is available to taxpayers who are unable to pay their taxes due to financial hardship. The taxpayer's account will be placed on hold for a period of time, during which the IRS will not take any collection action. Interest and penalties continue to accrue. Financials are required and a lien may be filed.

6. Offer in Compromise: This program is available to taxpayers who are unable to pay the full amount of taxes owed and are unable to pay through an installment agreement. The taxpayer may be able to settle their debt for less than the full amount owed. Many times, for a fraction of what’s owed. There are strict eligibility requirements and full financial disclosure is required.

Taxpayers should consult with a tax professional to determine the best payment plan for their specific situation.

Before you enter the daunting maze of IRS regulations, consult a Tax Relief Expert at our office. Schedule your complimentary consultation to assess your situation and compare your options for tax relief today!

Failing to address IRS tax debt can be a costly mistake. Interest compounds daily, similar to credit card debts, and the amount owed often doubles every several years due in part to penalties and interest. Now is the time to take charge of your finances by addressing this head-on before it spirals out of control. The IRS Installment Agreement can be a great option for taxpayers who can’t pay the IRS off in a lump sum.

Our firm has the expertise and skill to navigate the IRS and help you resolve your tax issues, even if you have unfiled returns from multiple years. Through an Offer in Compromise which is IRS's debt settlement program, we may be able to settle your entire tax debt- including penalties and interest for 85% or more off, if you qualify! Our team can guide you through this process and we invite anyone who wants professional advice on dealing with their taxes to contact us so that they can find a permanent solution for their problem.

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