When you Owe the IRS, it’s easy to Pay Back IRS Taxes if you are aware of all of your options. You can get your economic affairs back on track with an IRS Debt-Settlement plan. Though they may not be common knowledge, these tax debt relief programs are available to everyone and are provided by the IRS. Below are just a few IRS Debt Settlement programs that can help you Pay Back IRS Taxes when you Owe the IRS Money.
Non-Disclosure Installment Agreement: This particular option to pay Back IRS Taxes applies only to debts under $25,000, and you must agree to pay the full amount that you Owe the IRS. Under this plan, your time period to Pay Back IRS Taxes is set up over a maximum of 5 years but cannot extend further than the collections statute expiration. For example, if you Owe the IRS and there is only 1 month left under the statute of limitations, your time period to Pay Back IRS Taxes can be no longer than 1 month. Interest and penalties continue to accrue during your repayment period with this IRS Debt Settlement plan. You can, however, pay above your installment amount and have that extra payment amount applied directly to the principal on your Back IRS Taxes rather than to the interest.
Another benefit of this IRS Debt Settlement Plan is that all assets, income, and expenses (including spending habits) are protected and remain private. Without the need for financial disclosure, there is reduced paperwork, and your case to Pay Back IRS Taxes can be completed within as little as two weeks.
Partial Pay Installment Agreement: This IRS Debt Settlement plan can apply to any size debt possible that you could Owe the IRS, unlike the Non-Disclosure Agreement. It does, however, require financial disclosure, and your monthly payment to Pay Back IRS Taxes is based on this disclosure. The three types of plans to this IRS Debt Settlement agreement are:
Affordable Payment Plan: This is aimed at those who Owe the IRS and want an “affordable” monthly payment. Keep in mind that there may be a huge difference between what the IRS deems “affordable” and what you deem “affordable.”
Affordable Settlement Plan: If you owe Back IRS Taxes but do not qualify for an Offer in Compromise (discussed in detail in the following section), but still want to settle for less than what you Owe the IRS, this IRS Debt Settlement plan may be for you.
Asset Protection Plan: This plan is for individuals that owe Back IRS Taxes and are primarily concerned about the IRS seizing certain assets, such as a house, automobile, retirement funds, etc.
Offer in Compromise: An Offer in Compromise is not an easy option to qualify for when you have Back IRS Taxes. However, if you do qualify when you Owe the IRS money, it can potentially reduce your tax debt by tens or even hundreds of thousands of dollars. If the IRS accepts your offer, you must pay the amount agreed upon within 30 to 90 days of that acceptance and remain 100% compliant for 5 years. This particular IRS Debt Settlement plan requires full financial disclosure of your assets, income, and expenses. The IRS compares your settlement offer to their calculations of what you are actually able to pay, based on the financial information you disclosed. This takes into account all assets and equity, even if you’re not able to access it. For this reason, unless you are absolutely broke with no chance of being able to pay what you Owe the IRS, you will not qualify for this IRS Debt Settlement Plan.
If you Owe the IRS, it’s important that you are fully informed of your IRS Debt Settlement options to pay Back IRS Taxes. Keep in mind that these are just a few of the payment options that are available to you. Know your rights, be aware of your options, and get out of IRS tax-debt now.