Owing the IRS can become very stressful and overwhelming. Being in debt to anyone can be a burden, but when it is a tax debt it can feel like the weight of the world is on your shoulders.

Unfortunately many Americans procrastinate when addressing tax debt out of fear, intimidation as well as a lack of funds.  The answer could be easier than you realize!  You can request and be granted an IRS payment plan!

An IRS Payment Plan is simply a monthly payment plan with the IRS to make it possible to pay off your debt over time rather than in one lump sum.  Believe it or not, the IRS does want to work with you!

In order to request a payment plan you will need to know exactly how much you owe the IRS including penalties and interest.  The best way to get this information is to call the IRS and get verification of the total amount of your debt.  Too many people make the mistake of only using the total tax debt and not including the penalties and interest that has been added to your balance.

You can request an IRS Payment Plan by calling the IRS at 1-800-829-1040 or online at this website:  IRS Payment Plan Request

The IRS must agree to accept your installment agreement before it is official.  They will contact you in approximately 30 days after you submit your request.

You should contact a tax professional to assist you with negotiating a lower payment, deciding what payment plan would work best for you and still be approved by the IRS and to make sure your particular tax debt even meets the criteria to request an IRS payment plan.

The IRS does charge a fee to set up a payment plan once you are approved.  Currently the fees are as follows:

$52.00 for direct debit installment agreements (meaning the monthly payments come right out of your bank account each month.
$105.00 for new installment agreements that do not use any type of direct deposit (meaning you have to send a check each month)
$45.00 if an installment agreement has been defaulted upon and needs to be reinstated

Be aware that the IRS will not approve a payment plan request if you have any unfiled tax returns. Again, contact a tax professional to be sure you are ready to request an IRS payment plan.

You do not have to carry this heavy burden forever!  Don’t procrastinate, take action today and save yourself thousands of dollars in penalties and interest!