If you don't qualify for the IRS Offer In Compromise program, a Payment Plan may be the way to resolve your problem. Setting up a payment plan with the IRS gives you a little more time to pay off your tax debts. Unfortunately, penalties and interest will continue to be charged on your outstanding balance as you pay the debt off. However, establishing a formalized payment agreement reduces the rate at which penalties accrue. You are required by law to pay the interest on your tax debt. |