Tax Debt Resolution: IRS Payment Plans

Last updated on October 4, 2022

The IRS has many tax debt resolution plans that taxpayers can use to resolve their back taxes. Each tax debt payment plan has qualifying factors that taxpayers must meet to be able to resolve their tax debt using them. Some of the commonly used tax debt payment plans are Installment Agreement, Offer in Compromise, Partial Payment Installment Agreement, and Currently Not Collectible.

Some tax debt payment plans allow tax debt reduction, some payment of debt in installments, and some postponement of payment of tax debt. Taxpayers should use a tax professional or a tax resolution company to select a payment plan, prepare their case and represent them before the IRS if they cannot pay the entire tax debt in a lump sum.

There are many kinds of IRS debt resolution plans to resolve tax debt, but because of their strict qualifying factors, taxpayers can only choose those that they have a good chance of qualifying for. If taxpayers apply for a tax debt resolution plan that they clearly do not qualify for, they may attract an IRS penalty.

For successful IRS debt resolution, taxpayers must carefully choose the most appropriate tax debt payment plan that allows them to comfortably resolve their back tax case. For complicated cases of tax debt, it is best to consult a tax expert to avoid errors.