IRS Payment Plans – Paying Taxes Through an Installment Agreement
Do you know anything about installment agreements? If not, you have probably never owed the IRS any money. But if you have owed money in the past or are in this situation right now, you need to realize that an installment agreement is something that you can greatly benefit from. This is one of the many types of IRS payment plans that are offered to taxpayers who cannot afford to pay their debt in full. If you owe money and learn more about installment agreements you will feel comfortable with this option.
An installment agreement is the most common type of IRS payment plans. You can also use this type of plan if you owe state taxes. Additionally, this type of plan is usually the easiest to obtain. In other words, if you ask for an installment agreement the IRS will more than likely comply with your request because they know it is in both parties best interest.
With this type of payment plan you will be required to pay the IRS a set amount of money every month, on time. If you do not send the proper amount or are late the IRS has the right to cancel this agreement and seek payment in another way. You should also know that an installment agreement must pay off your entire debt within three years. The IRS will not enter into an agreement with you for longer than 36 months.
Before you agree to this type of IRS payment plan you need to file IRS Form 9465. This is the form that will setup your agreement, and will more or less show what terms you have to live by until you debt is paid off.
Not everybody who owes money will benefit from an IRS payment plan. Some people can afford to pay in full. An installment agreement is easy to setup, and if you get on a regular payment schedule that you are comfortable with you should be able to wipe out your debt in a matter of three years or less.
Do you feel that an installment agreement is the best type of IRS payment plan for you?