Realistic IRS Payment Plans

         After considering one of the more well-known (yet difficult to qualify for) plans in Offer-In-Compromise (OIC), let’s shift our focus to realistic options. There is a real expectation that more Taxpayers will end up with a tax debt after filing a Tax Return this year. Let’s see why these agreements may prove to be a better choice when it comes to dealing with a surprise debt.

          Guaranteed Installment Agreement (GIA). This typically is a 3-year payment plan for balances of under $10,000. This is attractive because it does not require management approval or selling off assets to pay the IRS. However, the Taxpayer must not have been involved in any other payment plan in the previous 5 years. They must also have filed all Tax Returns related to the debt.

          There are other programs for those who owe around $50,000 and $100,000. The length of time to pay is increased, but there are circumstances in which the payment plan can be shortened. To understand why this happens and determine if one of these plans fit your situation, please contact your Qualified Tax Professional.

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