“Can taxes be paid in installments?” is a common question among people who face a particularly high tax bill. In today’s post, we answer this question and offer some tips for paying your taxes.
Can Taxes Be Paid in Installments?
Yes, if you can’t pay your taxes by the due date, you can set up a payment plan with the IRS to settle your tax bill in installments.
However, most people find it easier and less expensive to take advantage of other options, such as paying their taxes by credit card.
If you still want to pay your taxes in installments, the first thing to do is to contact the IRS to request a payment plan.
The good news is that, with some exceptions, the IRS is generally prohibited from levying and their time to collect is suspended while an installment agreement is pending.
You have different options to apply for a payment plan: you can do it online, by phone, or even by traditional mail.
Once the IRS approves the installment agreement, you can choose to pay your monthly installments from your checking or savings account or by money order or debit/credit card (fees apply when paying by card).
What You Need To Keep in Mind
Keep in mind that there are application fees associated with setting up an installment agreement, although the fee may be reduced in some cases.
Whether you decide to set up a payment plan or pay by other method such as credit card, remember that it’s better to pay as much as you can by the due date. This way you will limit any late payment fees and penalties.
At JT Tax Services, We’ve Got Answers to Your Tax Questions
At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.
We are located in Oxnard, California.Contact us today by email (firstname.lastname@example.org), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.