Settling tax debt has never been easy. As the Internal Revenue Service have become more lenient to tax payers who are not able to settle IRS debt promptly, more and more policies and programs on how to settle IRS debt have been made by the IRS. This is one way of helping people pay their taxes in a more convenient way without getting pressured by the collection activities. Each method is made to suite any financial situation that the tax payer may encounter. Whether he is bankrupt, is not capable of paying the debt on time, or is not just capable of paying the whole amount of debt, the IRS has a solution for you.
One particular method of settling tax debt is through partial payment installment agreement. The partial payment installment agreement allows tax payer to have more manageable monthly payments over a longer period of time. It is somewhat like the regular installment payment agreement. The tax payer needs to pay the penalties and interest that the debt has incurred until the outstanding debt is fully satisfied.
The only difference between a partial payment installment agreement and a regular payment installment agreement is that the former has smaller monthly payments and it is subject to the statute of limitations. The smaller payments are usually temporary. Every two years the IRS reviews your financial status and evaluates whether you are capable of paying the full amount required. The good thing in partial payment installment agreement is that after the statute of limitation expires after ten years, you are no longer accountable of the tax debt. This means that if you sum up all your payments, it is more likely that you paid less that what you actually owed to the IRS. But before you decide, try to figure out if the partial payment installment agreement will work for you. There are other methods available that you should consider such as paying it in full or to set up an offer in compromise. Whatever method you choose, make sure that you are comfortable with the terms and conditions of the said method.
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