The IRS also offers short-term payment plans if you think you can pay off your tax debts in 120 days or less and if the amount you owe is less than $US 100,000. The IRS typically calculates interest and penalties for tax arrears, even if you make a deal. A payment plan is an agreement with the IRS to pay the taxes you owe within a longer period of time. You should apply for a payment plan if you think you can pay your taxes in full within the extended period. If you qualify for a short-term payment plan, you are not responsible for any user fees. If you do not pay your taxes when they are due, this may lead to the sending of a notification of the federal tax deposit and/or an IRS tax action. See Publication 594, The IRS Collection Process PDF. If you are not eligible for a payment plan through the online payment tool, you can still pay in installments. If you owe less than $10,000 to the IRS, your payment plan is usually approved automatically as a “guaranteed” instalment payment agreement. You can qualify for an individual payment plan by going to IRS.gov/opa if you don`t meet the criteria for a guaranteed payment contract.
Taxpayers can qualify for this type of agreement if the balance owed to the IRS is less than or equal to $50,000. According to the IRS, individuals can make the full payment, they can agree to a short-term payment plan in 120 days or less, or they can agree to a long-term phased agreement to pay the tax debt in more than 120 days. . . .