IRS Tax Payment Plans: Installment Agreements
At first glance, installment agreements may seem like a perfect way to handle your tax liability. Few people have the cash in hand to pay off sizeable tax bills in one fell swoop, and by spreading out the bill over time, you’d be making things easier for yourself in the long run. This is particularly true for the boom-and-bust economy like in The Woodlands.
The only problem is that this only tells half the story. The Internal Revenue Code authorizes the assessment of interest and penalties on balances, meaning that the longer a tax bill goes unpaid, the more an individual taxpayer will pay in interest and penalties — which can be substantial.
In addition, using automatic payroll deduction or auto debit means that a taxpayer would still see a reduced net income. Basically, in many cases “taking advantage” of an installment agreement amounts to little more than using a credit card to pay a tax bill, which in many situations is far from ideal.
We Can Evaluate ALL Your Options And Determine What Is Best For You
At our tax law firm, tax law and related matters is all we do. We help clients located in The Woodlands. We have several decades working with individuals and businesses throughout the U.S., and actual time working for the IRS — and learning how to best help taxpayers when they face potentially crushing tax liabilities.
The benefit of working with our experienced tax attorneys is that we will carefully evaluate all the advantages and disadvantages of a particular course of action. While in many cases we will recommend that our clients find a way to pay off their tax liability all at once — perhaps taking advantage of an offer in compromise — there may be special cases where an installment agreement makes the most sense. If this is true in your case, we will determine your eligibility and help you at every stage of the application process.
We do more than dole out legal advice. We take a careful look at your financial situation, thoroughly evaluate all your legal options, then give you a roadmap to improve your finances for the long term.
Learn If a Tax Payment Plan is Right For You
To arrange to meet with a tax lawyer in a confidential consultation, complete our online contact form or call our offices. We help clients in The Woodlands, but also throughout San Antonio.