If you`re struggling to pay your taxes because of the COVID-19 pandemic, the IRS payment agreement could be an option for you.
The IRS payment agreement, also known as an installment agreement, allows taxpayers to pay their taxes over time instead of in one lump sum. The agreement is available for individuals and businesses.
The first step in setting up an installment agreement is to determine how much you owe in taxes. Once you know the amount, you can apply for an installment agreement using the IRS`s Online Payment Agreement tool.
During the COVID-19 pandemic, the IRS has made some adjustments to the payment agreement process. For example, the agency is waiving penalties and fees for certain taxpayers who are experiencing financial hardship due to the pandemic. Additionally, the IRS has extended the payment deadline for some taxpayers.
To be eligible for these relief measures, you must meet certain criteria. For example, you may need to prove that you have been directly affected by the pandemic, such as by losing your job or becoming ill.
Keep in mind that even if you are granted an installment agreement, you will still be responsible for paying the taxes you owe plus any interest that accrues on the balance. However, the payment agreement can help you avoid more severe penalties, such as liens and levies on your property or bank account.
If you are struggling to pay your taxes because of COVID-19, don`t hesitate to contact the IRS for help. The agency has resources available to assist taxpayers during this challenging time, including the payment agreement and other relief measures.
In conclusion, the IRS payment agreement can be a helpful option for taxpayers who are struggling to pay their taxes due to the COVID-19 pandemic. If you are interested in exploring this option, be sure to contact the IRS and determine whether you are eligible for relief measures.