FC2Video

A monthly payment plan allows the payment of a tax debt in smaller, more manageable amounts. Payment plans generally require equal monthly payments that will result in full payment of the tax owed by the time the statute of limitations expires for the Internal Revenue Service to collect the tax. If a taxpayer cannot pay their tax debt in full by the end of the collection period, but can pay some of the tax they owe, they may qualify for what’s called a partial payment installment agreement. However, for all payment plans, the amount of the monthly payment will be based on the amount owed and the ability of the taxpayer to pay that amount within the remaining statutory time.