How long do i have to pay the IRS back?

The IRS will provide taxpayers with up to 120 days to pay their full tax balance. There is a penalty of 0.5% per month on the outstanding balance. The IRS gives eligible taxpayers up to 72 months to fully pay their tax debt. Keep in mind that interest and penalties will continue to accrue until the balance is paid.

If you're owed a refund in a later tax year while you're on the plan, the IRS can subtract those payments from what you owe. As a general rule, there is a ten-year statute of limitations for IRS collections. This means that the IRS can attempt to collect outstanding taxes for up to ten years from the date they were assessed. Subject to some important exceptions, after the ten years have elapsed, the IRS must stop its collection efforts.

Every year, the statute of limitations expires for thousands of taxpayers who owe money to the IRS. The Fresh Start program allows taxpayers to settle their tax debt for less than they owe, giving them a new opportunity to pay their future taxes.

Brock Cottew
Brock Cottew

Infuriatingly humble web expert. Typical pizza fanatic. Lifelong food lover. Amateur bacon fan. Wannabe internetaholic.