Have a Tax Question? Ask a Tax Expert
Hello, I would like to assist with your question. However, I want to be sure I understand the question correctly. You owe the IRS past taxes and cannot pay in full at this time. Is that correct?
If my understanding is correct, you have a few options. Upon request, the IRS will generally allow you a 120 day grace period from the date of notice when they calculate your tax liability. If you can pay the full amount you owe within 120 days, call 1-***-***-**** to establish your request to pay in full.
Alternatively, you can use IRS Form 9465 to establish a payment plan with the IRS. However, there is a fee just to setup the payment plan. Beginning January 1, 2017, the fees for setting up an installment agreement are $225, $107 (if you make payments by direct deposit), $149 (if you set up an online payment agreement), or $31 (if you set up an online payment agreement and make payments by direct deposit).
I hope I answered your question with sufficient detail, accuracy, and completeness based on the facts communicated. I would be happy to expand my answer should you need clarification, before you rate my response. If no additional information is needed, please rate my response, based on thoroughness and accuracy, rather than any good or bad news/content. We (the experts) are only compensated when an answer is accepted and rated with at least 3 stars; but my goal is your complete satisfaction and a 5 star rating. I appreciate your prompt response. Sincerely, ***** ***** Breecher, CPA.