Back Taxes Help for Paying in Installments

Last updated on April 3, 2023

Paying tax debt in installments is one of the most common methods of resolving tax debt. Many people choose one of the IRS’ various Installment Agreements to pay their tax debt because it allows easier payment of the debt. Those who have the financial strength to pay their full tax debt, but do not want to pay it in one single payment can choose an Installment Agreement to make fixed monthly payments. Professional back taxes help can be used to explore and choose the right payment plan, represent the case before the IRS, and resolve it quickly and smoothly.

Advantages of Paying in Installments

Even though making payment in installments is a little more expensive than paying the full debt amount in a lump sum, it helps to maintain financial stability of the taxpayer. It is a good idea to pay the most that you can in the first payment to lower the balance as much as possible. This will decrease the amount of interest you will need to pay in future monthly payments.

For as long as there are back taxes remaining to be paid, the IRS will charge penalties and interest on the amount. Therefore, when you consider the duration of the payment agreement, keep it short as you can to minimize the interest and penalties charged.

Back Taxes Help in Choosing an Installment Agreement

There are various kinds of Installment Agreements designed according to the amount of tax debt owed. Those who owe $10,000 or less may consider the Guaranteed Installment Agreement. The Streamlined Installment Agreement is for appropriate for tax debt of $25,000 or above. Each Installment Agreement has different qualifying factors. It is crucial for the smooth resolution of a case that you choose the plan that provides you the most benefits. Tax debt reduction can also possibly be achieved in an Installment Agreement.

The IRS encourages people to pay the full amount of back taxes by taking a loan if they do not have the funds to fulfill the debt. Before applying for a payment plan, consider every option to choose the one that is most beneficial for you.

Professional Back Taxes Help

Professional back taxes help is sought because most people have limited knowledge about tax laws, IRS policies and tax debt resolution rules. Additionally, representation from a tax lawyer helps a taxpayer in negotiations with the IRS. After a tax service is hired, it prepares the tax case and represents it with the aim of getting an early and an advantageous resolution. It saves a taxpayer time and effort in resolving the case.

When choosing to hire a tax service, check the qualifications of its  staff, background, the number of cases successfully resolved and the fee structure. It will help you to hire a competent and legitimate service.