A payment plan is an agreement with the IRS to pay your federal tax bill over a certain amount of time. There are two kinds of IRS payment plans: short-term and long-term. Typically you’ll make monthly payments to settle what you owe. As long as you’re keeping up with the payments timely, the IRS usually won’t garnish your wages or seize any bank accounts or property. Keep in mind that an IRS payment plan doesn’t get you out of interest and penalties for late payments; those amounts will continue to accrue until your balance is zero.
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