July 18, 2025 Breaking News, Latest News, and Videos

What are repayment programs for the IRS?

An OIC will allow you to relieve your tax liability for a less substantial amount than you owe to the government. In addition, it may be a viable choice if you cannot pay your whole tax debt or if doing so would cause financial trouble. The IRS analyzes your particular facts and circumstances to assess your eligibility for payment plans. This article will cover some of the basics of IRS repayment programs and fresh starts for individuals with tax debt.

Benefits

Getting a payment plan for your tax debt arranged with the IRS can help you avoid extra interest and penalties. In addition, it will help you avoid having your future refunds offset. Tax debt can also significantly affect your credit score and eligibility for applying for loans. Therefore, if you cannot pay the whole amount owed, payment plans can help avoid problems in the future.

Moreover, when having a repayment plan with the IRS, you are in control of the monthly payment amount, and depending on the amount outstanding, you may have up to 72 or 84 months to settle your balance. The IRS is quite forgiving for individual taxpayers, especially first-time offenders.

The individual responsible for the tax debt may also pay the bill in full without further fees or penalties. Perhaps, the main benefit of an IRS installment plan is that it allows you to select how much you pay each month and offers you more time (up to 84 months) to pay your bill in full. Having the choice of a customized payment plan, rather than a predetermined invoiced monthly amount that may exceed what you can afford, boosts your chances of paying off your debt and reduces some of the stress.

The advantages of paying your taxes in time

First, paying your taxes in time will help you avoid paying additional interest and penalties.

 In addition, you will eliminate missing out on future reimbursements, and any return is initially used to pay any back taxes owing. Finally, be aware that the IRS is authorized by law to levy fines on taxpayers who fail to submit a tax return or pay taxes owed by the deadline.

The remainder is subject to interest and a monthly late payment penalty if you cannot pay your tax liability by the initial filing deadline. There is also a penalty for failing to file a tax return, so you should file in time, even if you can’t pay your debt in full. It is always to your best advantage to pay in full as soon as possible to avoid extra fees.

Short-term Payment Plan

According to the IRS, if you cannot pay in full immediately, you may be eligible for an extension of up to 180 days. There is no cost for this complete payment; however, interest and any applicable penalties continue accumulating until you pay what you owe, which is very common in loans. Individuals may be able to set up a short-term payment plan by utilizing the Online Payment Agreement (OPA) application. We’d welcome the advice to contact a tax consultant in the case of significant tax debt to the IRS.

Fresh start program

Tax debt brings significant pressure on people, and it can be very stressful to repay your debt to the IRS. However, nowadays, there are many ways to facilitate repayment, and the IRS has become rather forgiving with first-time tax offenders.

The IRS initially created the ‘fresh start program’ to provide tax assistance to people with tax debt, offering relief to those in debt. However, the program has particular criteria, and it is often difficult to apply to this program.

The IRS fresh start tax program is a breath of fresh air for those who have outstanding tax bills and are already drowning in bills we can’t pay. Those with tax problems who qualify for the IRS Fresh Start initiative may be able to lower their tax liability by up to 90%. An amount like that can be life-changing to many people who remain in debt. 

If you remain in debt and would like to apply for the fresh start program, we invite you to have a call with one of our tax consultants or to look at our information on the fresh start program.

Who Is Eligible?

The most general principles specify that you are qualified to apply for a compromise offer if you:

– Filed all applicable tax filings and made all required anticipated payments.

– Are not currently involved in a bankruptcy process

– Have a valid extension for a current-year return (if applying for the current year)

– An employer who has made tax deposits for the current and previous two quarters.

Tags: in News
<>Related Posts

Man Arrested in Brentwood for Impersonating Firefighter During Palisades Fire

July 18, 2025

July 18, 2025

The suspect faces at least 28 criminal counts—including 23 felonies—spanning incidents from 2023 to May 2025 Federal and local law...

West Coast Premiere of ‘The Opposite of Love’ Opens at Hudson Backstage Theatre

July 18, 2025

July 18, 2025

Produced by Neil Gooding Productions, behind shows like Back to the Future: The Musical, the play runs Thursdays through Saturdays at...

Study Highlights Economic Impact of Cap-and-Trade Extension in Los Angeles

July 18, 2025

July 18, 2025

Governor Gavin Newsom and legislative leaders are pushing to reauthorize the program this year, citing its role in generating 287,000...

Film Review: Superman

July 17, 2025

July 17, 2025

“This movie is packed with storyline, Superman lore, meaningful objects, and action.” writes Kathryn Whitney Boole Rated PG-13129 MinutesReleased July...

Multiple Drug Arrests Reported in Palisades Park in Recent Weeks

July 17, 2025

July 17, 2025

SMPD Reported Several of the Arrests Between June 29 and July 5 The Santa Monica Police Department reported several drug-related...

(Video) Did You Know Emma Chamberlain’s Coffee Shop is in Century City?

July 17, 2025

July 17, 2025

The outpost is a first for the popular influencer Did You Know Emma Chamberlain’s Coffee Shop is in Century City?...

Mayor Bass Hails National Guard Withdrawal as Victory for Unity

July 17, 2025

July 17, 2025

The Pentagon’s decision to reduce the troop presence follows weeks of legal challenges and public demonstrations Mayor Karen Bass celebrated...

DUI Checkpoints to be Conducted Across LA This Weekend

July 16, 2025

July 16, 2025

The LAPD selects checkpoint sites based on data indicating high incidents of impaired driving-related crashes and arrests The Los Angeles...

SMPD to Conduct Bicycle and Pedestrian Safety Operation on Friday

July 16, 2025

July 16, 2025

The focus will be on speeding, illegal turns, failing to yield or provide right of way to cyclists or walkers,...

Dodgers to Host Back to School Bash for Fire-Affected Families

July 16, 2025

July 16, 2025

The free event will offer free groceries, school supplies, outfits, haircuts, medical screenings, and carnival rides The Los Angeles Dodgers...

LA Sees Second Straight Year of Homelessness Decline, Leaders Celebrate Progress

July 16, 2025

July 16, 2025

The survey, designed by the University of Southern California, reported a 17.5% drop—the largest two-year decrease on record The Los...

LAPD Seeks Missing 63-Year-Old Man Known to Frequent Playa Vista

July 15, 2025

July 15, 2025

His family last heard from him via a group text on June 22 The Los Angeles Police Department’s Missing Persons...

Santa Monica Offers City-Owned Properties for Affordable Housing Development

July 15, 2025

July 15, 2025

The move aims to address the city’s Regional Housing Need Assessment of 8,895 units, with a goal of producing at...

California Hits Two-Thirds Clean Energy Milestone

July 15, 2025

July 15, 2025

This year, clean energy has powered the state for an average of seven hours daily, with over 90% of days...

Venice Beach to Host First Medal at 2028 Olympics

July 15, 2025

July 15, 2025

Venice Beach, known for its vibrant boardwalk, will kick off the 844 ticketed events, hosting the triathlon along its coastline...