Tips for managing your installment agreement

Knowing that you do not have enough money to pay your taxes in Texas can create ongoing financial stress. Your proactive approach to working with the Internal Revenue Service may put you in touch with resources to help you avoid legal consequences.

You can compare various collection alternatives to find one that meets your needs. Through consistent and open communication with the IRS, you can create a reasonable agreement to fulfill your tax obligations.

Reducing default risks

Just because you have a payment plan in place does not mean there is nothing left to do. Failing to abide by the terms and conditions of your modified agreement to pay taxes could put your plan at risk of default. According to the Internal Revenue Service, you can reduce your risk of default by understanding how to properly manage your payment plan. Some of the things you can do include the following:

  • Verify the accuracy of your billing information prior to making a payment
  • Pay the minimum required amount and more if your situation allows
  • Honor your payment obligations even if your tax return comes through
  • Notify the IRS of any changes to your address
  • Proactively make payments on time

Preparing for the future

With a payment plan in place, you can turn your focus toward improving your financial situation. With one less deficit to worry about going into default, you can analyze you budget and set new goals for your future. Your commitment to making payments will protect you from worsening consequences including tax liens, compromised creditworthiness and seizure of your property.