Understanding IRS Tax Payment Plans

The IRS generally accepts various payment plans if you cannot full pay the total balance owed. The most basic tax payment plan is a streamline payment plan. The IRS usually gives taxpayers 72 months to pay off their back taxes. If the individual cannot fulfill the required payments within that timeframe, he or she needs to disclose their financial information and pay the disposable income amount. It is recommended that you work with a tax debt resolution specialist when handling tax related documentation.

Before we proceed, you should realize the importance of paying your taxes on time. If you do not fulfill your IRS tax payments by ignoring the tax bills and avoid setting up a payment plan, the IRS can take the following actions:

Tax liens: The government can claim your personal property and assets by placing a tax lien on them. A lien does not involve an actual seizure and is generally issued if you owed more than $10,000 in unpaid taxes.

Tax levies: If you ignore the lien notices, the government may seize your property. Your car, home, wages, and funds in your bank account may be seized.