How long does the IRS give in order to pay off your debt?
I'm sorry I was not making myself clear. I was audited by the IRS and I will start making payments. I wanted to know what time limit does the IRS give in order to pay this off?
Public Comments
- 5 years max
- Max payment plan term is 5 years. You'll want to figure out how much your balance is, assume an 18% interest rate, 60 month term, and see how much of a payment you'd need to make. If you couldn't possibly make that payment, talk to them. Balances can be negotiated sometimes, especially if it's clear you have no capacity to repay the full amount.
- That will depend upon the agreement that you were able to negotiate with the IRS. If you negotiated a 12 month payoff, that's what you have. Do NOT be late on any of your payments either.
- The IRS will generally give you five to six years; however, that period may be shorter if the collections statute is shorter. Generally the collections statute is ten years from the later date of when the tax was due or when the tax returns were actually filed. The IRS may give you even less time if they feel that their tax collection ability is in "jeopardy." Kreig Mitchell www.irstaxtrouble.com www.irstaxtrouble.com/blog.htm
