Find more information on IRS Payment Plans. If you need help setting up a payment plan with the IRS or your state, we can help.
Are you interested in taking advantage of an IRS payment plan because you are unsure of your ability to pay your liability in full? This is a common way of thinking. After all, when you have the chance to enter into a payment plan with the IRS you are not going to be asked for all of your back taxes in a lump sum. But does this mean that you definitely qualify for an IRS payment plan? Definitely not.
To qualify for an IRS payment plan you have to be up to date with all filings from past years. In other words, if you have yet to file a tax return for two years ago you are not going to qualify for a payment plan. Instead, you need to file this return and then get back in touch with the IRS. You may find out that this turns up more back taxes. While this can be upsetting, at least you will be able to setup your IRS payment plan for every last dime that you owe.
Just because you qualify for an IRS payment plan does not mean that this is what you should do. There are other options available to you as well. For instance, if you want to get rid of your tax liability all at once you can send a check for the total amount due. Do you have enough money to make this happen? If not, you can always consider borrowing from a friend or other lender. This way you can pay off the IRS, and then worry about paying what you owe to somebody else. Anytime you can avoid crossing the IRS in a bad way you should do so.
If you have filed all of your past returns and are up to date in all possible areas you should qualify for an IRS payment plan. From there, you need to pay what you owe, on time, until your liability is gone.
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