Setting Up IRS Payment Agreements
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If you owe money to the IRS or worried that you cannot pay your IRS payments in full, you still have many options available for you. The IRS allows many tax payers that owe money to them to set up what you call an IRS installment agreement. It is a payment agreement that will allow you to get the chance to get rid of your debt over a period of time. Depending on how much you owe the IRS, it may take up to months to several years, to pay them off.
However, I think this is a really great idea to consider because you can reduce your debt by as much as half. If you have a large debt, it really would matter. In order to qualify for a payment agreement with the IRS, you would have to owe no more than $25k. You will have to fill out form 9465 or the online payment agreement application, to get started. This gives you a nice chance to be able to put a little extra money in your pocket and still pay the IRS off your debt. It is way better than having to pay them back all at once.
If you want to know more about setting up a payment agreement with the IRS, you should consider hiring a tax professional. They can more briefly explain the process of how the installment agreements work. You can relax your mind after you have found there are other ways out there to get you out of the hole.
Related articles
- Filing After April 15 (turbotax.intuit.com)
- Losing Sleep Over Owing The IRS? (blogs.forbes.com)
Jim is a professional that gives tax resolution services, he loves to play tennis and to solve the world’s problems beginning with taxes.