IRS Tax Payment Plan

If you owe back taxes to the IRS and are having trouble coming up with the funds to pay off your Federal tax debt, there are options to consider. The IRS tax payment plan is a way for taxpayers who need help filing back taxes with the federal government to pay back the amount they owe over a period of time without the threat of increased collection actions. The IRS allows several types of IRS tax payment plans, including an automatic installment agreement plan. Other types of IRS Payment Agreement plans include partial-pay installment agreements, streamlined installment agreements, offer in compromise resolutions and stair-step installment agreements. There are various benefits, problems and requirements for each of these types of payment plans.

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What If I Don’t Make My IRS Tax Payment?

If you choose to ignore your tax bill and don’t take steps to set up a payment plan, the Internal Revenue Service will take action. There are numerous collection methods and consequences you can expect if you continue to let your tax debt go unpaid.

  • Federal Tax Lien

    If the government places a tax lien on your property or assets, they’re laying claim to your personal property. A lien doesn’t involve actual seizure, but it’s the step immediately prior to the IRS taking action. A lien will generally be issued only if you owed more than $10,000 in back taxes. 

  • Federal Tax Levy

    If lien notices go ignored, the government will seize your property. This could mean wage garnishment, bank account seizure, or the selling of your possessions, like your home, cars, or other assets.

    What If I Can’t Make My IRS Tax Payment? Should I Still File?

    Always file your tax return, even if you cannot afford to pay your outstanding balance. The IRS will enforce a failure to file penalty that must be paid in addition to your back taxes. Currently the penalty is .5 percent per month, which can increase to a maximum of 25 percent of your tax bill. The IRS also offers the Fresh Start Initiative, which can waive the failure to file penalty waived for up to six months.


At Wasvary Tax Services we have multiple years of experience with helping our clients with IRS Tax payment plan situations. Our expertise can help guide you in what can often seem like a totally overwhelming, perhaps even impossible, process.

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