How to Get Out of Debt: Opting for an IRS Installment Agreement
Updated: Nov 3, 2021
Many people find themselves in debt because of their taxes. The IRS is not forgiving when it comes to unpaid tax debts, and the penalties for non-payment can be severe. While you may have been trying to avoid paying your taxes by delaying filing your return or failing to file at all, now that you owe the IRS money and are looking for a way out, an installment agreement might be what you need. An installment agreement with the IRS allows taxpayers in combined tax liabilities come up with a payment plan designed on their own timeline. There are many benefits associated with this kind of agreement and we will discuss them below!
Though it is preferred that taxpayers should pay their liabilities in full, people who are having trouble with the IRS and their taxes owe it to themselves to look into an installment agreement. It can give them time they need in order to make a payment plan that is manageable for them, as well as qualify for any potential benefits associated with this type of arrangement!
Having month-to-month payments may be a viable option with its own benefits only for those who are not able to pay the debt in full. Benefits will include:
Making payments that agree with your income
Select your monthly payment amount
Repay your balance over 72 or 84 months, depending on the amount owed
Penalties are reduced.
Can choose to settle the sum in full without incurring any additional fees or penalties -Does not extend the IRS's ability to collect from you beyond the 10-year statute of limitations
A simple installment agreement is usually available to taxpayers who owe the IRS $50,000 or less in tax, penalties, and interest. Simplified qualification may be available for taxpayers who owe more than $50,000 but less than $100,000, thanks to an IRS-tested broadened criterion. Individual taxpayers owing more than $100,000 will be required to submit a financial statement in order to arrange a payment plan.
IRS Fresh Start Program
IRS Installment Agreements also happens to be one of the four major components in the IRS Fresh Start Program. There are many programs that are offered in order to solve your tax-related issues in some sort of way. But there is a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program; The IRS Fresh Start Program.
This program is designed to relieve not only the IRS, but also your back taxes. It does this by making sure you are filing accurately and gives up-front payment options solutions for those who can't afford their tax debt payments. This relief program utilizes four of the major tax resolution strategies into one consolidated program!
See if you qualify for the Fresh Start Program today!
Resolve your tax debt before the IRS surprises you with late fees and penalties!
Answer a few questions
Qualify and be presented with a resolution - click here
Enroll in Fresh Start
You can click here to be connected with a verified partner of IRS Fresh Start Initiative