If you owe the IRS money, one possible solution is an Installment Agreement. Up until recently, if you owed less than $25,000.00 you could do something known as a Streamline Installment Agreement. The advantage of a Streamline Installment Agreement is that it is simple to get and enter into.
The IRS recently changed their procedures, and now, a form of the Streamline Installment Agreement is available to anyone who owes between $25,000.00 and $50,000.00 (nothing has changed for those who owe less than $25,000.00).
Generally, a taxpayer can have up to 72 months to pay. However, in certain circumstances, taxpayers can have longer to pay, or the Installment Agreement can be approved for the amount that is less than the amount of tax they actually owe.
You can enter into one of these Installment Agreements if your tax liability is based upon the following:
1). Income tax owed on a form 1040.
2). Trust Fund Recovery Penalty signed against a responsible party (in other words, payroll taxes).
3). Self Employment or Unemployment tax.
4). An Owner, who is personally responsible for taxes in the name of Limited Liability Company where the Limited Liability Company is no longer operating.
If you enter into one of these Installments Agreements and you owe more than $25,000.00 but less than $50,000.00, the IRS will require you to enter into a direct debit Installment Agreement.
Keep in mind that every solution to an IRS problem has pluses and minuses. You should check with a professional who deals in this area of the law on a regular bases, to find out which solution is best for you.