Taxpayers who have tax debt want to reduce their tax liability and avoid IRS collection actions. Most taxpayers who are under tax debt want to resolve their tax debt, but they do not have the money to pay their entire tax debt. However, they do not necessarily need to pay back the entire IRS back taxes amount to get into compliance.
Taxpayers whose financial condition does not allow them to pay back the entire tax debt amount can consider tax debt reduction payment plans, such as an Offer in Compromise and a Partial Payment Installment Agreement. Those who cannot pay any amount of tax debt should consider applying for the Currently Not Collectible program.
Most taxpayers have the financial capability to pay their IRS back taxes, but cannot pay it in a single payment. They may consider applying for an Installment Agreement under which they can pay their tax debt in monthly payments. The maximum time a taxpayer can pay their tax debt under Installment Agreement is six years.
There are many IRS back taxes resolution methods that taxpayers can use to resolve their tax debt, even if they cannot pay it in full or with a lump sum. These IRS payment plans are created for different financial conditions, and help resolve back taxes comfortably.