IRS Automatic Payment Plans

Automatic Payment Plans have one huge benefit to a taxpayer -- You don't have to supply details about your financial situation. Just fill out some online forms at irs.gov and make an electronic agreement. 

All of the various types of Payment Plans have the same basic requirements:

  1. You must be in compliance with all your tax returns filed and current year estimated tax payments made.

  2. You must not have been past due on previous tax bills for the last five years.

  3. You must not have had a previous payment plan for the last five years.

Basic IRS Automatic Payment Plan - You must owe less than $10,000 and be able to pay it completely with up to 36 monthly payments 

IRS Streamlined Payment Plan:

  • Individuals & Out-of-Business Sole Proprietors who owe less than $50,000

  • All other taxpayers who owe less than $25,000

  • Have up to 72 months to pay it off. 

IRS Expanded Payment Plan:

  • Individuals & Out-of-Business Sole Proprietors who owe less than $100,000

  • Have up to 84 equal monthly payments to clear the debt

One Big Gotcha on these Plans - If you miss any payments, fail to file any tax return on time, or fail to make any current year tax payments, the payment plan is automatically null and void. 

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