With a simplified plan, you have 72 months to pay. A minimum payment is activated, equal to the balance due divided by the maximum period of 72 months. In general, you can choose what you pay each month. That is, the IRS will ask you how much you can pay.
However, if you have a long-term repayment plan, you should choose a payment amount that pays off your debt within 72 months. The IRS will analyze your full financial situation to determine your ability to pay. The IRS will calculate your monthly payment based on your allowable income and expenses. And you must be able to pay your entire tax balance before the tax collection law is due.
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.
