An IRS payment plan is a practical and workable solution for anyone struggling to pay off their federal taxes.
It offers you the opportunity to pay off your tax debt over a longer period of time than may otherwise be allowed, and with more manageable payments.
An installment agreement also grants the ability to reduce interest rates and/or penalties accruing on your tax debt, making it a cost-effective way to manage your finances and satisfy your financial obligations to the IRS.
Negotiating an IRS payment plan is easy—simply contact the Internal Revenue Service directly or enlist the help of an experienced tax professional in order to ensure you are set up on an agreement that works best for you.
The lowest monthly payment the IRS will accept on an installment agreement depends on your individual financial situation and the amount of tax debt that you owe. If you owe the IRS less than $10,000 and are eligible for their "guaranteed" installment plan, you can design your monthly payments to fit with what fits within your budget. Understandably these types of agreements usually last three years long so it's important that before making any commitments you understand all of your legal rights as well as obligations when dealing with the IRS -- if need be seek advice from an expert!