There are 5 types of major IRS Installment Agreements.  There are various factors to determine which one is the best for your situation.

1. IRS Guaranteed Installment Agreement

This is usually granted upon owing under $10,000 to the IRS. You would typically have 72 months or six years to pay back.

2. IRS Fresh Start Installment Agreement when the total balance is under $25,000

This plan is essentially part of the first plan when you owe under $25,000 in back taxes. The IRS would grant you a 72-month repayment plan, over the course of six years. It can be paid online, by mail or direct debit.

3. IRS Fresh Start Installment Agreement: Under $50,000

This plan applies when you owe at least $25,000, but under $50,000. The IRS would grant you a 72 month repayment plan.

4. IRS Payment Plan: Over $50,000 Back Taxes

If your overall balance is over $50,000, the IRS will file a tax lien for each of the years you owe . The payment plan has to be through direct debit from a checking account and can be paid over an 84 month period.

5. Non Streamlined IRS Payment Plans: Over $100,000

If your balances have now reached over the $100,000 mark, the IRS has to review your financials and your type of collections. The IRS may still take up to an 84 month payment plan or something that’s financial based. Keep in mind that you have to prove your income and prove your expenses.

If you owe money to the IRS, we can help you reduce penalties and get relief. Please contact the team at Fine and Clear Tax Solutions or call 516-247-9950.