Options if you Owe the IRS Money

Owe back tax

If you owe IRS money, or owe back taxes to IRS, then there are a variety of options for you to look at to resolve this debt.

An Offer in Compromise is a method in which anyone owing back taxes can pay as much as possible in five to twenty four months, and in return the IRS will compromise on outstanding debt.

An Installment Agreement is a process where someone owing back taxes can pay them in set monthly payments, until they no longer owe IRS money. There are multiple types of Installment Agreements, listed below.

A Streamline Installment Agreement is a situation where you the assessed amount you owe irs back taxes is under 25,000 dollars, and you can pay off the amount within 60 months.

If you owe IRS money, meet the conditions of a Streamline Installment Agreement, but have other expenses such as credit cards that you must continue paying off, this is referred to as a Conditional Expense Installment Agreement.

Other options not explained above, but that are still available, include a Stair Step Installment Agreement, a Partial Pay Installment Agreement, a Currently Non Collectible, and a Penalty Abatement. If you owe IRS money, be sure to explore these options to see what best suits your financial situation. For more information see this.

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