Irs Payment Plans
The term IRS payment plan, is typically used to describe one of three different types of installment agreements a taxpayer can set up with the IRS.Although similar in concept, each payment plan or installment agreement has a unique set of requirements and provisions. The 3 most common types of IRS payment plans involved in tax resolution are the Full IRS Installment Agreement, Partial Pay IRS Installment Agreement, and the Offer in Compromise.
We've outlined a brief description of each of these plans - if you'd like more detailed information about any of these payment plans, or to learn more about your options in the tax resolution process, please see our help sections, or give us a call at (888) 918-8121.
3 OF THE MOST COMMON TYPES OF IRS PAYMENT PLANS
Full Pay IRS Installment Agreement
A full pay installment agreement is a payment plan with the IRS, where the taxpayer agrees to pay the total outstanding debt in full by making monthly payments for a set number of years. The terms, dollar amounts, etc depend on the type of Installment Agreement and the amount owed.
Partial Pay IRS Installment Agreement
The partial pay installment agreement is a payment plan similar to the full pay installment agreement, but in this case, the IRS has agreed that you as the taxpayer can not “in your current situation” afford to make large enough monthly payments to pay off the entire IRS debt in full and periodic review.
Offer in Compromise
The Offer in Compromise is the famous “Pennies on the Dollar” settlement that you have heard advertised by so many companies on television and the radio. Although, this is an actual settlement option, and the IRS does enter into these types of agreements each year with taxpayers, they are not the majority! In fact, the number of accepted Offers in Compromise is comparatively quite small. This agreement is only an option for someone who clearly has no possible way to pay the IRS the full tax debt they owe. If accepted, this agreement allows the taxpayer to settle for a portion of the original debt, and make considerably smaller monthly payments for a period of 5 years. Unlike the partial payment agreement, the IRS will not go back, and check to see if your situation has improved, nor will they attempt to increase the monthly payments from the original terms.
If you are currently faced with an IRS Audit, or owe the IRS back taxes, you should think very strongly about consulting with a tax professional today. To speak directly with a tax advisor at our firm, call us at (888) 918-8121. The call is free, the consultation is free, and you are under no obligation to hire us.