Life After Setting Up an IRS Installment Agreement: How to Get Off the Treadmill and Back to Zero with the IRS

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It’s time to breathe a sigh of relief — you have successfully set up an installment payment and are on the path to getting back in the good graces of the IRS. Unfortunately, you’re not quite out of the danger zone. Keep the following suggestions in mind as you strive to complete your installment plan:

Build Installments Into Your Revised Budget

As soon as your installment agreement is accepted, add this new financial obligation into your budget. It should be a top priority, right alongside your mortgage or your student loan bill. Once you’ve added your installment payment, you’ll have a better sense of your new budget — and whether you may need to cut spending elsewhere or bring in additional income.

Opt For Automatic Payments

Sheer forgetfulness compromises far too many installment plans. If you struggle to keep track of your various deadlines, automatic payments could make your life easier. The IRS offers a Direct Debit Installment Agreement, which takes payments automatically from your checking account. This option takes another task out of your day-to-day life, while also providing valuable peace of mind.

Keep an Eye on Your Balance

Your balance is worth monitoring, even if you opt for automatic payments. Make a point of checking regularly to determine if you’re on the right track. Don’t worry too much if the latest payment isn’t reflected on your account, however; it typically takes the IRS at least a week to credit installment payments.

A proactive approach is always best when dealing with the IRS. In addition to helping you secure an installment plan; the Highland Tax Group can help you take the steps necessary to stay out of tax trouble. Contact us today to learn more about your options.