Your Road To Tax Debt Relief: IRS Installment Agreements

TL;DR: So, you’ve got the news that every taxpayer hates to hear: You owe the government money! Thankfully, the IRS permits eligible taxpayers to settle their obligations through an Installment Arrangement. This guide explains who qualifies, the rules that apply, and how to apply them to your situation.

So, you’ve got the news that every taxpayer hates to hear: You owe the government money! Thankfully, the IRS permits eligible taxpayers to settle their obligations through an Installment Arrangement.

The IRS Fresh Start Program is referred to as a government program that helps taxpayers and businesses reduce their tax liabilities and burdens.

Tax relief can broadly refer to tax credits, deductions, or exclusions that might lower your tax liabilities. There’s additional special tax relief available to taxpayers who have been affected by natural disasters.

How Does Tax Relief Work?

Tax relief programs vary by the amount of tax debt owed and the taxpayer’s ability to pay. Tax relief may offer you more time to pay, or help you settle a tax debt for less than the amount you owe.

What Is An IRS Installment Agreement / IRS Payment Plan?

An IRS payment plan is an agreement you make directly with the agency to pay your federal tax bill over a certain amount of time. There are two kinds of Installment Agreements: short-term and long-term. These IRS payment plans grant you an extended timeframe to avoid tax levies, but tax penalties and interest will continue to accrue on your debt until the balance has been paid in full. If you believe you can pay off your tax debt with a little more time, an installment agreement may be suitable for you.

There are two kinds of IRS payment plans: short-term and long-term. Short-term payment plans are 120 days or less, whereas long-term payment plans are 120 days or more. If taxpayers want to set up a short-term payment plan for approximately up to 180 days, they’ll need to apply for an extended short-term payment plan by contacting the IRS by phone or mail.

Resolve Your Tax Bills

If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!