If you have been procrastinating about filing your 2017 tax return or have unfiled tax returns for prior years, you need to consider the consequences, such as penalties, interest, and aggressive IRS collection actions.
The IRS has the authority to enter into payment plans with taxpayers who owe back taxes. In a effort to streamline the processing of these agreements the IRS continues to test expanded criteria for taxpayers requesting installment agreements.
The IRS recently announced a pilot program expanding the ability of taxpayers to qualify for Streamlined Installment Agreements. The test will be conducted through September 30, 2017.
When you owe back taxes an installment agreement can be extremely helpful in solving your IRS tax problems.
If you have fallen behind in paying your income taxes the IRS will normally let you to set-up an installment agreement or payment plan to pay back taxes.
The IRS recently updated Form 9465 used by taxpayers to request an installment agreement or payment plan to pay back taxes.
The Treasury Inspector General Finds the IRS Needs to Improve Controls Over Partial Payment Installment Agreements
The IRS allows taxpayers who are unable to full pay their outstanding tax obligations with a traditional installment agreement to enter into a Partial Payment Installment Agreement (PPIA).
All taxpayers are expected to immediately full pay their delinquent taxes. When this is not possible taxpayers may be permitted to pay their back taxes over a period of time. If a taxpayer is unable to make full payment of his/her tax liability before the expiration of the Collection Statute Expiration Date (CSED), but has some ability to pay, the IRS has the authority to enter into a Partial Pay Installment Agreement (PPIA).
The IRS has recently made it easier for taxpayers to request an installment agreement to pay back taxes. If your outstanding tax liability is greater than $25,000 but not more than $50,000 and you cannot pay the full amount you owe, the IRS will generally give you up to 72 months to pay.