by Matthew Cohen
The IRS offers several options to taxpayers who filed their tax returns but can’t afford to full-pay the amount they owe by the due date.
For example, if a taxpayer is unable to pay the full amount owed over the 10-year statute of limitations on collection, they may claim hardship and end up paying a lower amount.
On the other hand, if a taxpayer can full-pay their liability within the time allowed by the IRS which is currently 6 years (72 months), they may enter into a streamlined installment agreement assuming they meet certain requirements. One such requirement up to this point is that the taxpayer owe $50,000 or less.
Matthew Cohen is a partner at the Tax Resolution Institute.