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IRS Repayment Options Explained

IRS Repayment Options Explained

By on Sep 13, 2018 in Tax relief | 0 comments

IRS Repayment Options Explained

Taking no action is the worst thing you can do if you owe any federal tax debt, especially considering that there are options. If you’re not able to pay your taxes by the original filing due date, then the balance is immediately subject to interest and late penalties. You may also be responsible for penalties associated with never having filed a return. Every day that ticks by allows that debt to grow larger.

We will describe below some of the options available to help you repay all the money you to the IRS. You can ease your burden by taking action early on. Consider the following options you have to repay whatever you owe the federal government.

Paying IRS Debts Outright

Taxpayers who have the money to pay their debt immediately can do so with an electronic funds transfer or with a debit card. Once you’ve paid off the debt, no further interest or penalties can be assessed to you. The IRS will even accept payment from any major credit cards you might have.

 

Full Payment Agreements

Short-term tax debts are the easiest to fix. Say you don’t have the money to pay your taxes in full by the time the due date rolls around, but you’ll have the money within several months. This often happens because you need to deal with an emergency right as tax time rolls around.

If you find yourself in this situation, then you can apply for a full payment agreement from the IRS. While interest and penalties will accrue until you’ve paid off your total liability, there’s no other fee associated with the application. Taxpayers who qualify for this option can get up to 120 days to repay their debt.

 

Monthly Installment Agreements

Apply for an installment agreement if you can’t pay off the debt in the near future. Since this involves a formal application process, it does require you to pay a fee. However, it’s much easier to pay your tax debt off if you’re approved because you’re given the freedom to make fixed monthly payments to the IRS without interest. This turns your tax debt into a predictable, monthly expense that you can budget for.

 

Currently Not Collectible Status

While it won’t make your tax debt vanish, you can also apply to file your account under the Currently Not Collectible status. You’ll be responsible for repaying your debt in full in the future, but the IRS won’t attempt to collect payment from you.

Note, however, that the IRS will still continue to calculate interest on the unpaid balance, so it’s in your best interest to pay as soon as possible.

 

Getting Professional Tax Relief

Some taxpayers are even allowed to pay less than the full amount that they owe by making an Offer in Compromise. You’d need to pay at least part of the balance and some filing fees, but this option may drastically reduce how much debt you have hanging over your head.

Navigating IRS repayment options can be difficult, so it’s nice to have help on call. Success Tax Relief can help you figure out which option will leave you debt-free, burden-free and stress-free the fastest.

Do you owe federal tax debt? Lessen your burden by considering several IRS repayment options. Call Successtax relief for futher consultation  to dramatically reduce your tax debt.

Contact us online for a free consultation or speak to someone today directly at 877-825-1179.

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