Yes, it is possible to negotiate a payment plan for back taxes with the IRS. The IRS understands that individuals and businesses may face financial difficulties that make it difficult to pay all taxes owed at once. The IRS provides several payment plan options, including installment agreements, short-term payment plans, and offers in compromise.
An installment agreement allows taxpayers to pay their taxes owed over time, and a short-term payment plan allows taxpayers to pay the taxes owed in full within four months. The IRS's offer in compromise program allows taxpayers to settle their tax debt for less than the full amount owed.
However, it is important to note that there are limitations to negotiating a payment plan with the IRS. Taxpayers must be current on all tax filings before they can set up a payment plan, and the IRS will only agree to a payment plan if it believes the taxpayer is making a good-faith effort to pay the taxes owed. Additionally, if a taxpayer fails to make timely payments on an installment agreement, the agreement may be canceled, and the IRS may take collection action against the taxpayer.
If you are facing difficulties paying back taxes and would like to negotiate a payment plan with the IRS, it is recommended that you consult with a licensed tax professional or attorney who can provide specific advice based on your individual circumstances.
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