What IRS payment plan options are there?
Short answer: Short-term plans give up to 180 days to pay. Long-term installment agreements spread the balance over monthly payments. Interest keeps running on both.
The IRS offers two main payment plans:
- Short-term plan: up to 180 days to pay the full balance. No setup fee.
- Long-term installment agreement: monthly payments. Individuals who owe $50,000 or less in combined tax, penalties and interest can usually apply online without detailed financial statements.
Interest and the failure-to-pay penalty continue until the balance is paid, although the failure-to-pay penalty drops while an installment agreement is in place for a return filed on time.
If the balance is larger, or the monthly payment the IRS wants is not affordable, other options include a partial-pay installment agreement, currently-not-collectible status or an offer in compromise. Try our IRS payment options calculator to see which may fit, then call us to confirm.
General information from Davis Schuler & Associates, LLC, not advice for your situation. Tax rules and thresholds change; confirm the current rules before acting.
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