You’ve done the hard work of establishing an installment agreement with the IRS. Now, your goal is to finish paying your installments — and to take care of tax debt for good.
If you’re like many well-meaning taxpayers, you may find yourself trapped in an endless cycle of setting up and adjusting installment plans, especially as new tax obligations are added.
It takes a concerted effort to rid your account of tax debt once and for all — but it’s far from impossible. Follow these suggestions to make IRS debt and installments a thing of the past:
Pay Higher Installments
High installment payments may be painful in the short term, but they definitely limit interest. This can add up quickly, so it’s always worth your while to pay higher installments when possible.
Keep Up-to-Date With Estimated Payments
Another short-term obligation that makes a huge difference over time? Estimated payments. These can be easy to neglect but remember: your failure to pay throughout the year will result in a huge tax bill that you will almost certainly struggle to handle.
Try for an Offer in Compromise
In some situations, the IRS offer in compromise is vastly preferable to standard installments. The application process can be time consuming — but if you succeed, you may be able to settle for significantly less than you actually owe. As such, the offer in compromise is worth seeking if you’re consistently having trouble with your installment plan or otherwise struggling with major tax debt. The IRS offers a pre-qualifier tool to provide additional insight into this opportunity.
If you’re determined to put your tax troubles in the past, a strategic approach is essential. Our team at the Highland Tax Group can provide the high-level insight you need. Contact us today to learn more about the role our services could play in bringing your tax issues to an end.