How an installment agreement can help you with your tax debt

On Behalf of | Dec 24, 2019 | Back Taxes or Tax Debt

Every year, numerous Connecticut residents find themselves unable to pay their taxes. If you find yourself in this position, there are various ways you can pay off your tax debt without doing too much damage to your pocketbook. One way is through installment agreements.

When you find out you owe more than you could possibly pay come your tax due date, you may be able to work out a payment plan with the Internal Revenue Service. Establishing this type of agreement is not necessarily easy. Making sure you achieve a payment that actually works with your budget can prove challenging.

An installment agreement is something you pay monthly for however many months you and the IRS agree to. The amount you pay each installment will depend on how much you owe in taxes, interest and penalties. There are no set terms that apply to every case. The terms you get will be specific to your situation.

Once instated, an installment plan is something you have to stick with. If you do not, if you fail to make a payment, the IRS may try other collection tactics. This means your wages may be garnished, your property seized or liens may be placed on your accounts and property — among other things.

An installment agreement can be a good way to deal with your tax debt if it is appropriately negotiated. Thankfully, this is not something you have to try to figure out on your own. To learn how an experienced Connecticut-based tax attorney can help you with this and any of your other tax concerns, please take a moment and visit our firm’s website.