Accepted Answer

Hello pip,

If you do not have the funds to pay a tax bill that you owe, you may set up an installment payment plan with the IRS. Since the amount that you owe is less than $10,000, you can actually apply right on line for this payment plan. I am giving you a link to a page in the IRS website which explains the payment plan program and there is also a link to the on line application.

http://www.irs.gov/businesses/small/article/0,,id=108347,00.html

Once you establish a payment plan, interest and penalties will continue to accrue on the unpaid balance. However, you always have the option of paying off the tax bill in full once you have the funds to do so. As long as you stay current with your agreed to payments, the IRS will not pursue any other collection activities against you, such as liens or levies being placed on your assets.

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Thank you pip

Expert:	Merlo
Pos. Feedback:	99.9 %
Accepts:	7687
Answered:	10/12/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad