| Harsh Reality: You want the easy way out. But with | | | | that you can pay off your debt in a given time period |
| the IRS, there is none. You have to carefully weigh the | | | | and they will allow you to make monthly payments on |
| pros and cons of every IRS payment plan. If you | | | | your Tax Debt. This required fully disclosing your |
| make the wrong mistake, you could end up losing | | | | financial situation. |
| money instead of saving money. | | | | Pros: |
| Offer In Compromise: Settle your debt. The "Offer in | | | | A good option if you have disposable income but can't |
| Compromise" program allows you to settle your debt | | | | pay the debt in full |
| for a lower amount. | | | | Cons: |
| Pros: | | | | This Installment Agreement is a binding contract. You |
| You can save thousands of dollars. | | | | have to pay every month. |
| You can pay off your debt faster | | | | If your income goes up, the IRS will want you to pay |
| Cons: | | | | more. |
| Extremely difficult to qualify for this program | | | | Hardship Plan: Bitter poverty. Prove to the IRS that |
| Applying extends the statute of limitations | | | | paying your debt will make you go without basic |
| You have to include 20% of the offer and/or a $150 | | | | needs. They will give you time to get your finances in |
| dollar application fee (with the initial offer). And it's | | | | order. |
| nonrefundable. | | | | Pros: |
| Installment Agreement: Pay monthly. Prove to the IRS | | | | You won't hear from the IRS for months. |