The tax season is over, but many taxpayers could not file their return before the April 15th deadline or file for an extension. In such cases, taxpayers must first determine the amount of taxes they owe to the IRS. After determining the amount, they should consider the penalties and the interest that the IRS will charge on the tax amount due to be paid. Penalties and interest are charged each month or part of a month of non-payment.
The simplest method to get back into compliance is to pay the full amount of back taxes as early as possible. It will also help you to pay the least amount in penalties and interest. Even if you cannot pay the entire back taxes amount in one payment, you can pay as much as you can in a lump sum and then pay the balance in installments.
To pay tax debt in monthly installments, taxpayers need to apply and qualify for an Installment Agreement plan. It is best to seek help from a professional tax service when choosing to pay in installments, getting the tax debt amount reduced, getting penalties reduced or forgiven, or postponing payment of back taxes.
If you receive a notice from the IRS regarding the payment of tax debt, seek help from a tax professional before contacting the IRS. The tax professional will help you to find and qualify for the best plan to achieve a favorable resolution.