You owe back taxes. You can not afford to pay all the taxes now. IRS Payment Plan may be an option available.
IRS Payment Plan – Basics
An IRS Payment Plan is a contract to pay back the taxes over time. The IRS may allow you 6 years to pay back the taxes. There are 10 year IRS Payment Plans. Making payments for 10 years does not sound fun. However, at least it is an option available to you.
Owe Less than $50,000 – The IRS will accept a 6 year IRS Payment Plan.
Owe More than $50,000 – The length of payment terms will depend on your financial situation. These IRS Payment Plans are a little harder to set up.
Owe Any Amount of Taxes – The payment terms will depend on your financial situation. The IRS may allow you to pay back the taxes in 10 years. For example, you owe $25,000. The IRS may accept an IRS Payment Plan of $50 per month. The payment amount is negotiable.
Click here to learn more about IRS Payment Plans
- More details on the types of IRS Payment Plans
- How to determine your monthly payment amount
- How to make payments
- Can you pay early
- Will the IRS take my tax refund
IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.