There is no reason to worry even if you cannot pay your tax debt in a single payment. An Installment Agreement, a tax debt payment plan of the IRS, can get you out of tax debt without hurting your savings. If you have a tax debt amount you cannot pay in full in a single payment, you can apply for an Installment Agreement.
How Does an Installment Agreement Help?
An Installment Agreement is an IRS debt payment program that allows you to pay your tax debt in fixed monthly installments. You can pay your back taxes in years, paying comfortable amounts each month to fulfill your debt and get back into the good graces of the IRS.
Even though the IRS charges interest on the amount that remains to be paid, you get the benefit of paying off your tax debt in small chunks.
How Does the IRS Calculate Monthly Payments?
The IRS takes into account your income, assets and liabilities, along with the amount of tax debt, to calculate the amount you will need to pay in monthly installments. They judge from your financial resources how much you can pay every month towards fulfilling your tax debt. You can negotiate the terms and conditions of the agreement with the IRS, and influence the amount you pay in monthly installments. It is best to get help from a tax service to negotiate with the IRS and get a resolution you are happy with.
Do I Need Tax Help?
Hiring tax help gives you the advantage of having expertise and experience on your side. Good tax help providers can negotiate with the IRS to get you a resolution that is in your favor. To deal with the IRS, you need to be smarter than them. Using professional tax help will lead to a resolution that gets you the most benefit.
If you are planning to resolve your back taxes, using an Installment Agreement can be the IRS debt payment plan to consider. This is the simplest way to get out of tax debt if you have the ability to pay your tax debt. Remember that the IRS is bound by its policies and you have the freedom to negotiate.