Paying the IRS Over Time
If you cannot pay your tax bill in full, the IRS allows many taxpayers to pay in monthly installments. This arrangement is called an installment agreement. It can bring order to a balance that feels unmanageable and can limit further collection activity while you keep to the terms. Botwinick & Botwinick, CPAs PC helps Atlanta individuals and businesses decide whether a payment plan makes sense and set one up.
What to Know Before You Apply
- Interest and penalties continue. A payment plan spreads out what you owe, but the balance generally keeps accruing interest, and certain penalties continue until it is paid.
- Filing must be current. The IRS usually expects all required returns to be filed before it will agree to a plan. See Non-Filed Tax Returns.
- You must keep up. Missing payments or failing to pay new taxes when due can put the agreement in default.
- Different plans have different requirements. The paperwork and financial disclosure the IRS asks for depend on the size of the balance and the type of agreement.
How We Can Help
Understand your balance
We start by confirming what you owe and for which years, using your notices and, with your authorization, your IRS account records. See Get Your IRS File.
Choose a realistic payment
A plan only helps if you can stick with it. We review your income and expenses with you so the proposed payment fits your budget.
Handle the request
We prepare the request and communicate with the IRS for you, and we explain what to expect after the agreement is in place.
Other Options
An installment agreement is not the only route. Depending on your finances, other arrangements may be worth a look, and we will discuss them with you. Read more at back taxes owed. If your debt is from payroll taxes, see payroll tax problems.
Going forward, tax planning can help you avoid a repeat by adjusting withholding or estimated payments.