IRS & State Payment Plans: Tax Repayment Options for Taxes Owed
When you are unable to pay your income taxes you have several payment plan options available for paying back the back taxes owed. Below is a list of some of the most common payment plans.
An installment agreement (IRS payment plan) is the most commonly attained payment plan for paying back IRS and state taxes. This is also the easiest type of plan to attain from the IRS. With an installment agreement, you will make an arrangement with the IRS to make monthly payments that pay off the entire amount of taxes owed during a period of 3-5 years.
Requesting a partial payment installment agreement allows you to pay off the tax amount owed with monthly payments just like the regular installment agreement but the payments do not pay the entire amount of back taxes owed. This method is one of the few ways to settle IRS back taxes for less than is actually owed and it is typically easier and less time consuming than filing for an offer in compromise.
This actually isn’t an official IRS payment plan with the Internal Revenue Service but you can request 45 day extensions to allow more time for you to pay your back taxes owed. If you understand how the system works and you know how far along you are in the IRS automated process, (if it has already begun) then you can time it so you can make several small payments until you are able to pay off the entire amount.
If you can pay the amount in full and still have enough money to pay your other required bills then this could be the easiest and best option for you. Even if you cannot pay in full, there are many clever ways that you can obtain the cash to pay off the taxes owed in full. If the amount is paid in full you will avoid interest and penalties that are incurred with an installment agreement.
If you owe state taxes that you cannot pay in full then a state tax payment plan may be a good choice for you. Each state has different criteria for allowing individuals and businesses to pay back taxes through a payment plan. For state specific payment plan details select your state on our state tax relief section to find specific instructions and/or forms that are required to apply for a state payment plan.
IRS Payment Plan Help & Information
Payment Plan Help
Do you need help with a Payment Plan? Our partner tax team (IRS Agents, Tax Attorneys, Tax Lawyers, CPAs) can ensure the best tax settlement for your situation. Understand how the service works and request a free consultation.
Delay IRS Collections
If you just need more time to pay and want to delay the IRS collection system you can easily get extensions.
Pay Back Taxes
General guidelines to follow in order to pay back taxes and setup a payment plan with the IRS.
File Back Taxes
Guidelines, steps and advice to follow when filing your back taxes.
Currently Not Collectible
Prove to the IRS that you do not have the means to pay your back taxes with your current financial standing. Hold of IRS until you can pay or until statute of limitations expires.