IRS Debt Payment Options

Last updated on March 14, 2022

There are various methods to pay IRS tax debt. Some include, a Full lump sum payment, an Offer in Compromise, an Installment Agreement, a Partial Payment Installment Agreement and Currently Not Collectible. Apart from payment of the entire tax debt in a single payment, all other payment plans require negotiation with the IRS.

The IRS considers the income and assets of a taxpayer before deciding whether they qualify for a particular debt payment plan. It is only after considering their financial ability does the IRS approve a taxpayer for a tax debt reduction, a payment plan, or an extension of time. Negotiation for a reduction or forgiveness of penalties can also be part of a resolution under certain IRS plans.

Only tax attorneys, enrolled agents, or Certified Public Accountants (CPAs) can negotiate a tax case before the IRS. Taxpayers who choose to resolve their IRS debt using a IRS payment plan should hire a tax lawyer to prepare their case and negotiate with the IRS. It is with the help of tax lawyers that taxpayers can get the most beneficial resolution to their tax debt case.

IRS debt payment plans have qualifying factors, but they are flexible and open to negotiation. Taxpayers who want to resolve their tax debt may research various tax resolution companies to choose a competent tax service for the best tax debt resolution.