What if I cannot pay all of my prior year taxes?

You can arrange a payment plan (Form 9465) with the IRS if you meet certain requirements to pay prior year taxes.

The IRS has indicated that you’re eligible for a guaranteed installment agreement if the tax you owe isn’t more than $10,000 and:

• During the past five tax years, you (and your spouse if filing a joint return) have timely filed all income tax returns and paid any income tax due, and haven’t entered into an installment agreement for the payment of income tax
• You agree to pay the full amount you owe within 3 years and to comply with the tax laws while the agreement is in effect
• You’re financially unable to pay the liability in full when due

There are two types of payment plans; short-term and long-term. Short term payment plans are payment amounts owed within 120 days. Long term payment plans exceed 120 days. Here are the

• Long-term payment plan (installment agreement): You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns.
• Short-term payment plan: You owe less than $100,000 in combined tax, penalties and interest.

This entry was posted on Thursday, January 21st, 2021 at 5:14 pm and is filed under Late Tax Filing FAQ, Tax Related Questions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.