Tax debt – Different ways to pay off your IRS dues
The different ways in which you can pay off your IRS tax dues are mainly of two types. You can either pay off the debs through installment agreement or the settlement agreement. Now, both the tax debt solutions option has various other types included in them. So, if you are having problems in paying off your tax debts, you can take the help of the different IRS debt pay off options to become free of IRS dues.
Installment agreement options
If you are having problems in making payments on your tax debt you can talk to the IRS about it and request them to agree to any of the installment options –
- Streamlined installment agreement – If you opt for the streamlined agreement, then you will not be required to fill out the 433-F Form which the Internal Revenue System or the IRS requires you to fill up in order to analyze the financial scenario. However, in order to make the payments through this option, you cannot owe more than $25,000 and you will also have to agree to pay off amount within 60 months. In this agreement, the IRS accepts the amount which shouldn’t be lower than the outstanding amount divided by 50.
- Guaranteed installment agreement – In guaranteed installment agreement, you will have to fulfill some criteria, like you must owe less than $10,000 to the IRS. In addition, you will also have to fulfill some other criteria too. Like, you will have to agree that you will file and as well as pay your taxes on time in the coming years. Another thing is that, the IRS won’t approve of the agreement if you have had been making payments through another installment agreement in the past 5 years.
- Partial payment installment agreement – Partial payment agreement may be suitable for you if your finances don’t permit you to make even minimum payments as per guaranteed or streamlined agreements. Under this agreement, you will have to make monthly payments only according to your affordability. However, the IRS is going to re-evaluate the terms of this agreement after every two years in order to analyze your affordability.
Whichever tax debt solution you choose to pay off your IRS debts, it is important for you to plan a budget and manage your finances so as to save extra dollars every month. This might be able to help you in paying off IRS debt within the specified time.
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