This program provides taxpayers a form of relief by entering into a repayment program that can last up to six years. Taxpayers make monthly payments towards their tax liability that is based on their ability to pay, current income, and liquid assets. At the end of the approved time period, the tax debt will be paid off in full. During this repayment period, the tax debt does not accrue interest or penalties, and the taxpayer is safe from wage garnishments and tax liens as long as they do not gain an additional tax liability.
Although this program is available, it does have certain eligibility requirements involved before someone could be approved for it. Some of the requirements include, but are not limited to:
- Tax debt amount of $50,000 or less
- Proof of financial hardship
- Agreement to diligently file tax return each year
- Agreement to diligently pay installment agreement each month
- Cannot be in an open bankruptcy proceeding
Although this list is not all-inclusive of the requirements needed to apply for this program, it can give you an idea on the complexity involved. A licensed tax professional can help you get the best resolution for your needs. At Justice Tax, LLC, we specialize in helping taxpayers receive the freedom from the financial burden that having a tax debt brings. Give us a call at 888-545-6007 for a free, no obligation consultation with one of our Senior Tax Consultants to discuss your situation and find the best resolution for you.