When it comes to paying taxes, many Americans struggle with the burden of owing the IRS money. However, the IRS understands that not everyone can pay their entire tax bill in one lump sum, and so they offer payment plans known as installment agreements.
An installment agreement allows taxpayers to pay their taxes over time rather than all at once, which can be a great relief for those who are struggling to make ends meet. But how do you know if your payments are on track? It`s essential to check the balance on your installment agreement.
The easiest way to check your balance is to log in to the IRS`s Online Payment Agreement tool. This tool allows you to check your balance, view payment history, and update your payment plan. To log in, you`ll need your social security number or taxpayer identification number, date of birth, and the amount of the last payment you made.
If you prefer to check your balance over the phone, you can call the IRS at 1-800-829-1040. Be prepared to provide the same information as you would when logging in to the Online Payment Agreement tool.
It`s important to note that penalty and interest charges will continue to accrue while you have an outstanding balance on your installment agreement. So, if you`re struggling to keep up with payments, it`s crucial to reach out to the IRS to discuss your options before falling too far behind.
Overall, keeping tabs on your installment agreement balance is a crucial part of managing your tax debt. By checking in regularly and staying on top of payments, you can avoid unnecessary fees and work towards becoming debt-free.