If you owe the IRS, there’s no time to lose. You need to pay, and fast! If you call the IRS directly you’ll learn they only want to talk about one thing, and that’s how soon you can pay in full. But that’s not your only option. You can pay the IRS in monthly installments or in partial payments.
Standard IRS Installment Agreement
Much like how you pay on your credit card debts, you can pay the IRS in monthly payments. However, there are many types of IRS payment plans. If you owe more than $10,000, the IRS may push you to accept one that does not work for your budget. It is in your best interest to talk to a tax debt professional to make sure that you get an installment agreement that puts you in a better situation. If you owe less than $10,000, fill out IRS Form 9465, Installment Agreement Request.
IRS Partial Payment Installment Agreement
In a Partial Payment Installment Agreement, the taxpayer makes regular monthly payments to the IRS, but the payments do not pay off the tax debt in full like most installment agreements are intended to. After the terms of the installment agreement are fulfilled, the remainder of the IRS Tax Debt is forgiven. Although a Partial Payment Installment Agreement request is more likely to be accepted by the IRS than an Offer in Compromise, it’s still tricky. First, you need to write a letter stating your request for a Partial Payment Installment Agreement and submit it to the IRS along with IRS Form 9465 and IRS Form 433-A. Any time that you are required to disclose your finances to the IRS, it is in your best interest to get help from a qualified professional.
If there is any way possible for you to pay your Tax Debt in full, consider that solution as a priority. Remember, penalties and interest continues to accrue on your Tax Debt when you choose to pay with an Installment Agreement. You’ll be saving money in the long run if you borrow money to satisfy your debt.