Tax problems are a serious problem. The IRS is very thorough about collecting what’s due to them, and they often make it a priority over other creditors.
As a taxpayer, you must pay your taxes on time. If you don’t pay taxes, your business can face penalties and even criminal charges. Also, intentionally avoiding tax payments may be considered a crime.
The IRS will take increasingly forceful steps to recoup what you owe them.
You are unable to obtain two installment agreements with the IRS, however, a payment plan offers you protection against further collection procedures and an opportunity to pay off your debt. There exist two approaches for entering into an installment agreement with the IRS:
1. Short-term payment plan:
A payment plan that requires you to make full payment in one or more lump sums within 180 days.
2. Long-term payment plan:
Make a series of payments over time to pay off the debt, with installments that can range from 180 days up until when the sum is fully paid and its statute of limitations has expired.
An installment agreement can be set up entirely online or via mail or phone. You can also set up an installment agreement in person. r, short-term payment plans can only be set up via mail or phone.
If your current tax debt is over $50,000, you will unfortunately not qualify for a monthly payment plan. However, if it's between 25k and 50k dollars then the only way to pay off this debt is through Direct Debit. Keep in mind these limits when planning how to best manage your finances!
If you want to take advantage of a payment plan, there are certain strict requirements that must be met. Furthermore, if you wish to stay in good standing and avoid defaulting on the payments, it is essential for you to pay close attention to all details outlined.
