A payment plan with the IRS is known as an installment agreement. And for some folks facing mounting tax liability, an installment agreement with the IRS is the right solution. If accepted by the IRS, you will make monthly payments and the IRS will leave you alone.
Unfortunately, the IRS does not allow taxpayers to enter into installment agreements at no cost. Fees are associated with installment agreements, and penalties and costs associated with the installment agreement may make an installment agreement the most expensive choice.
Keep in mind that different types of installment agreements are offered by the IRS. For example, there is a “streamline” agreement for taxpayer’s whose original tax liability was $50,000 or less and which can be paid back in 72 months. There is even an installment agreement where partial payments are made and most of the tax liability may be forgiven.
Now, for more information on this and other tax problem solutions, call to discuss your situation initially free of charge, or get our free book, How to Get Tax Forgiveness.