If you are in this position, you can use Form 9465: Request for a Payment Agreement to the IRS to implement a installment payment agreement. However, keep in mind that penalties and interest on the late balance will still apply until you pay the taxes due. Once a payout contract is approved, you can request a change or termination of a payout agreement. This request does not suspend the limitation period for collection. While the IRS reviews your request to change or terminate the instalment payment agreement, you must comply with the existing agreement. A instalment payment agreement may be terminated if you provide materially incomplete or inaccurate information in response to an IRS financial update request. The advantage of an installment plan is obvious: it gives taxpayers more time to repay their federal taxes in an orderly manner. As long as the terms of the agreement are respected and the taxpayer is able to make their payments, all collection efforts by the IRS or private collection agency will cease. Eligible individuals can also receive a six-month extension to file their tax return and possibly pay their tax bills if they experience certain financial difficulties.

and make sure you can afford the payments. Consider making quarterly withholding tax payments in the future so that when April 15 arrives, you won`t be affected by a significant tax liability. Consulting a tax advisor may be able to help. With a little planning and a few budget adjustments, you can make the IRS happy and save yourself the hassle of receiving tax notices in the mail…