A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended time frame. If you qualify for a short-term payment plan, you will not be liable for a user fee. Not paying your taxes when they are due may cause the filing of a Notice of Federal Tax Lien and an IRS levy action.

Act on two or more of the offers below for the best results!

4. Settlement Agreement

If you’re unable to pay your taxes, the IRS may also offer you a settlement agreement. Under this agreement, you would pay a portion of the taxes you owe, and the IRS would forgive the rest. To be eligible for this program, you must:

  • Owe less than $50,000 in back taxes
  • Be current on all tax filings
  • Have no outstanding tax liens

If you meet these requirements, you can submit an offer in compromise to the IRS. The IRS will review your submission and determine if it is acceptable.

Act on two or more of the offers below for the best results!

The IRS offers tax debt relief options for U.S. taxpayers suffering from financial hardship.

Did you know the IRS is aware of the COVID-19 pandemic and its impact on your finances? The truth is, there are tax debt relief options available to those who qualify.

Taxes are already complicated, and things can get messy if you get behind on paying them. When taxes are delinquent or overdue — typically from previous years — they are referred to as “back taxes.” And if you owe them, then utilize these various tax relief programs.

5. Offers-In-Compromise

The IRS’s offers-in-compromise program is one of the most popular tax forgiveness programs. Under this program, you can settle your tax debt for less than you owe. In addition, people owing less than $250,000 are now permitted to set up installment plans without prior authorization or additional income verification. The IRS also facilitates an Online Payment Agreement where taxpayers with Direct Debit Installment Agreements are permitted to request lower monthly payment amounts and different recurring due dates.

To be eligible for this program, you must:

  • Prove that you cannot pay your taxes in full
  • Demonstrate that paying your taxes would create a financial hardship
  • Have filed all required tax returns

This lets you settle your back taxes with the IRS for less than you owe. According to the IRS, it may be an option if you absolutely can’t pay your tax debt or if doing so creates a financial hardship.

The IRS also facilitates an Online Payment Agreement where taxpayers with Direct Debit Installment Agreements are permitted to request lower monthly payment amounts and different recurring due dates.

If you meet these requirements, you can submit an offer in compromise to the IRS. The IRS will review your offer and determine if it is acceptable.

Act on two or more of the offers below for the best results!

NEXT UP… The Innocent Spouse Relief and How It Can Benefit You…