Catch it Early: You usually file your taxes on time. But this year, you're scared to. You know this you owe the IRS, but this time, you can't pay it. So what should you do? Don't ignore your IRS Tax Debt. Find a solution to pay it off. The IRS actually offers a program that lets you pay your debt in monthly payments.
Paying Monthly: The IRS has a program that allows taxpayers to make simple monthly payments. It's called an “Installment Agreement.” It's a good option if you cannot pay your IRS Debt in full.
Installment Plan Criteria:
-You paid all your taxes for the past 5 years and on time, too
-You can provide documents to prove you can't pay your taxes in full on time
-You agree to pay the full amount owed in 3 years maximum
-You agree to comply with all tax laws during the plan
So you think you qualify? Next, is the hard part.
How To Apply:
-Fill out Form 9465 (You may be asked to fill out form 433-A as well)
-Include detailed evidence showing why you cannot pay your bills on time.
-If you are approved, pay the fee and then your first payment as soon as you get the IRS's letter
Pay on Time! If You don't, you'll be risking Tax Lien and Levies. And you won't be able to apply for an Installment Agreement for another 5 years if you mess up and don't pay.
Hurtles to Jump: The IRS wants their money as soon as possible. They don't want to give you an installment agreement. You will have to fight hard to get your Installment Agreement approved. If you are not accepted the first time, try again!