If you have an outstanding balance with the IRS and can’t pay it in full, you may apply for an Installment Agreement.
An Installment Agreement allows you to pay a federal tax liability over time. Interest and penalties will still accrue on your balance while you’re making your installment payments, so if you have a way of borrowing funds to pay the tax all at once, that may be the best option for you. If you’re unable to do that, however, the Installment Agreement is a manageable way of paying off your tax debt without collection action being taken.
The IRS also has Partial Pay Installment Agreements (PPIAs). A taxpayer must meet certain requirements in order to be eligible for this arrangement.
Contact us today if you owe back taxes to the IRS. We can ascertain what the best course of action is for your specific situation. If collection action is not yet being taken on your balance, we can help keep this from ever happening.