Types of IRS Payment Plans

If you think that all IRS payment plans are the same you should reconsider. They offer many types of payment plans, and your situation will dictate how you get involved. Generally speaking, you will have between four months and ten years to pay back the money you owe.

Listed below are four types of IRS payment plans:

1. Guaranteed IRS payment plan. When you owe the IRS less than $10k they will give you three years to pay back the money you owe. You are guaranteed this type of plan.
2. Streamlined IRS payment plan. Do you owe the IRS more than $25k? In this case, you will quality for this type of payment plan. The IRS gives you five years to pay your taxes with a streamlined plan.
3. A basic IRS payment plan. This is a basic type of plan, and to get started the IRS will require full financial disclosure. In other words, they want to know how much money you have. If they determine that you have the money on hand or can pay faster by liquidating assets there is a very good chance that you will be denied.
4. IRS partial payment installment agreement. With this type of plan you can pay less money each month so you have smaller payments. The term of this payment plan can be as long as 15 years.
All four of these IRS payment plans are commonly used. If you owe back taxes you need to determine which plan is best for you, and then attempt to enter into an agreement with the IRS. By hiring a tax professional you will increase your chance of entering a successful payment plan.

You will not be the right fit for every type of IRS payment plan. But if you owe back taxes one of them may suit your needs.

IRS Payment Plans
More information and help with IRS payment plans