Tax Tip: Online Payment Agreements for Taxes You Owe

Photo Courtesy - IRS [dot] gov(NEW YORK) -- If you owe money to the Internal Revenue Service, you may be able to pay it back over time.

Eric Smith, who's with the IRS, says you can go on the agency's website to set up a payment plan.

"The online payment agreement option on IRS.gov allows you to find out in a matter of a few minutes whether you qualify for a payment agreement with the IRS," says Smith.

Once qualified, you can agree to pay a certain amount of your debt each month.  Smith says a "monthly payment agreement is the best way to take care of a tax debt that you can't pay all at one time."

He says the IRS knows "many people are facing very severe financial difficulties" and the agency understands that.

Ignoring your taxes can lead to penalties, but Smith says if you contact the IRS it will listen.

"Anybody for any reason can get in a tough spot from time to time.  We're willing to work with people to try to work out those tax debts, those tax obligations," he said.

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