When it comes to paying taxes, the IRS offers taxpayers a range of options to help manage their tax debts. One such option is the IRS 84 month installment agreement. This agreement allows taxpayers to pay off their tax debts in monthly installments over a period of up to 84 months.

To qualify for an 84 month installment agreement, taxpayers must owe $50,000 or less in combined tax, penalties, and interest. Additionally, taxpayers must have filed all necessary tax returns, and must not have defaulted on any previous installment agreements.

Once approved, taxpayers will be required to make monthly payments until their tax debts are paid in full. The amount of each monthly payment will be based on the total amount owed, as well as the taxpayer`s ability to pay. It is important to note that interest and penalties will continue to accrue on the outstanding balance until it is paid in full.

There are several benefits to opting for an 84 month installment agreement. First, it allows taxpayers to pay off their tax debts over a longer period of time, making it easier to manage their finances. Second, it can help taxpayers avoid more drastic collection actions, such as wage garnishments or bank levies. Finally, it may also help protect taxpayers` credit scores, as long as they continue to make their monthly payments on time.

However, it is important to note that there are also some downsides to the IRS 84 month installment agreement. For example, because interest and penalties continue to accrue until the balance is paid in full, taxpayers may end up paying more in the long run. Additionally, if taxpayers fail to make their monthly payments on time, they may face penalties and other collection actions.

If you are considering an 84 month installment agreement with the IRS, it is important to seek the help of a qualified tax professional. They can help you determine if this option is right for you, and can assist you with the application process.

In conclusion, the IRS 84 month installment agreement is a viable option for taxpayers who are struggling to pay off their tax debts. While it has its pros and cons, it can be a valuable tool for those who qualify. If you are unsure about your options for paying off your tax debts, contact a tax professional today to discuss your options.