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If you're struggling to pay your tax debt in full, the IRS may offer you the option to pay it off gradually through a monthly installment plan. While the IRS can be difficult to work with, an installment plan can be a practical solution for both parties. By allowing taxpayers to pay down their debt over time, the IRS can collect the money it is owed without burdening the agency financially.

An IRS installment plan can be informal or formal, with the latter being a written agreement in which the taxpayer promises to make monthly payments in a specified amount. The minimum monthly payment for an IRS tax installment plan is determined by dividing the balance due by 72 for balances between $10,000 and $25,000.

There are several benefits to setting up an IRS installment plan, including avoiding further penalties, improving your credit, and ensuring future tax refunds. The approval process typically takes 15 to 30 minutes to set up the initial agreement by phone and then approximately four to six weeks to finalize direct debit setup.

Low cost tax relief can help you set up an installment plan that works for you, pays off your tax debt in the shortest amount of time, and keeps the interest accumulation to a minimum. We understand the various ways to arrange a payment option and will work with you to find the best solution.

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