Are you getting notices from the IRS regarding the debts that you owe them? If you’re going through a credit crunch and you don’t know how to meet your IRS tax debt obligations, you need not worry as there are many ways to do so. Tax debt obligations may take a toll on your personal financial life and you must be looking for some installment agreements that can ensure easy and fast repayment of your financial liabilities. Have a look at some ways in which you can do so.
- Guaranteed installment agreement option: If you owe an amount that is less than $10,000 to the IRS, you may choose the guaranteed installment agreement option. You have to negotiate with the IRS and also meet the eligibility criteria that are already set. You have to promise that you’ll file your taxes and also pay them on time in the coming years. The IRS will not approve that agreement if you have already had yet another installment agreement in the last 5 years. You also have to make sure that you pay enough monthly installments to clear the amount owed within the next 36 months.
- Streamlined installment agreement: If you resort to this particular option, you won’t have to fill the Form 433-F that the IRS usually tells you to do in order to analyze your financial situation. However, if you want to repay your tax debt through streamlined installment agreement, you must not owe an amount that is more than $25,000 and you also need to agree to repay the amount within a 60 month period. The amount that you make in a month should not be less than the total outstanding balance divided by 50.
- Partial payment installment agreement: If you’re in no condition to repay your debts with ease and you want to slash off an amount, you can resort to this option. You can make monthly payments as per your affordability and the time through which you have to repay the entire amount will also be more. The IRS will however reevaluate the terms and conditions if your financial situation improves with time.