IRS Payment Plans Explained
IRS Payment Plans Explained: Do you owe money to the IRS but can’t pay the amount due in full right away? Well don’t panic… The IRS offers many types of payments plans to debtors who can’t pay their taxes in full. Let me introduce some of these payment plans so you can choose the best option for you.
Partial Payment Installment Agreement
Partial payment installment agreements are the most accommodating of all payment agreements. The IRS will actually allow you pay only a fraction of the amount due if you stick with the terms of their monthly payment plan. To request a partial payment installment agreement, you’ll have to fill out Form 9465, Installment Agreement Request and Form 433-A, Collection Information Statement. You will then have to send a written partial payment request to the IRS bureau that is handling your case.
IRS Short Term Payment Extensions
Even though they don’t qualify as payment plans per say, I thought I should mention short term payment extensions. The IRS will usually allow 30 to 120 days extensions to pay back taxes owed. However, you cannot request a short term payment extension if you’ve already received a tax lien or tax levy.
IRS Installment Agreement
IRS installment agreements allow tax payers to pay their tax debt in monthly payments on a period of up to 3 years. This is the easiest of all agreements to obtain. All you need to do is fill the 9465 Form and specify how much you can pay per month and on which day you wish to pay.
All the forms mentioned in this article are available online on the Internal Revenue Service’s website at www.irs.gov. So make sure you take advantage of all the options available to you and don’t hesitate to seek professional help if you need more information on IRS payment plans.
IRS Payment Plans Explained
