The IRS encourages you to pay your back taxes as quickly as possible. For those individuals or businesses not able to resolve a tax debt immediately, a tax installment agreement can be a reasonable payment option. The experts at Accounting Advantages, Inc. in Jupiter, FL can chalk out an IRS payment plan and an IRS installment agreement for you.
Tax installment agreements allow for the full payment of the tax debt in smaller, more manageable amounts over time. Things to keep in mind: the goal for Accounting Advantages, Inc. is to demonstrate to the IRS or the State that you cannot pay all your back taxes, therefore another resolution is required. The advantage of an installment agreement is that no enforced collection takes place while the taxpayer is on the plan (provided the client doesn’t default). The disadvantage of an installment agreement is that interest and perhaps penalties continue to accrue every year.