IRS Tax Debt - Can’t Pay the IRS in Full? Learn How to Pay Monthly Instead

Posted: 09 Oct 2008 | Categories: Taxes

Nearly Impossible: Once you’re in tax debt, it’s hard to get out of it. Interest and penalties will accrue on your account every month. For every month you continue not to pay, your debt will grow. So why do you keep putting it off? You don’t have to pay your debt in full. There’s a way you can pay your debt in easy monthly payments.

Monthly Agreement: You might pay your credit card debts in monthly payments. The IRS offers a similar program. It’s called an “Installment Agreement.” It’s a good option if you cannot pay your IRS Debt in full, but do not qualify for an Offer in Compromise.

The Catch: There’s always a catch. Read these and make sure this plan is right for you before you apply for it.

-Have you paid all your taxes for the past 5 years? Have you paid them all on time? If not, you do not qualify for an Installment Agreement.

-Do you have proof? It’s a huge help to provide documents that prove you can’t pay in full.

-You get a maximum of 3 years to pay your debt off with this plan. So double check and make sure you can actually do so.

-You agree to comply with all tax laws during the plan. If you mess up, the plan will be terminated.

-You agree to pay every month on time. If you default, the plan will be terminated.

-You cannot apply for another Installment Agreement for 5 years if you default.

How To Apply:

-Fill out Form 9465 (You may be asked to fill out form 433-A as well.)

-Include detailed evidence showing why you cannot pay your bills on time.

-If you are approved, pay the fee and your first payment as soon as you get the IRS’s letter.

Success: Winning is only half the battle. If you are approved for an Installment Agreement, you have to make sure you pay the IRS on time for the next 5 years. This is something you’ll have to be committed to. But if you happen to miss a payment for a legitimate reason and they terminate your plan, you do have the right to file an Appeal.

Now You Have The Smoking Gun…Use it!

Richard Close was an IRS-Hitman. He worked as a revenue officer for the IRS and his father was the head of the collections branch for 30 years; so it runs in the family. He left that behind and now he’s partnered with Tax Defense Network to help thousands of Americans with their tax problems. He gives the tips and tricks for you to fight the IRS and win! Visit him at: http://irs-hitman.blogspot.com or http://www.taxdefensenetwork.com or contact: email irs-hitman@taxdefensenetwork.com or 1-888-248-9058.

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