Are you thinking of paying taxes with a credit card?
The thought of clearing a debt with the IRS in one fell swoop is certainly appealing, and if your credit rating is not in good standing in order to obtain a bank loan, that credit card can sure look good.
But is using a credit card to pay taxes a wise decision?
Before we explore the pros and cons of paying taxes with a credit card, let’s examine paying taxes through an installment agreement with the IRS.
First things first, contacting the IRS and working out an installment agreement is one possible option to manage your debt. Complete the IRS Installment Agreement Request Form 9465. If you owe $25,000 or less this process can be completed online. The IRS may allow you up to 60 months to pay your tax debt. Within 30 days, the IRS should let you know if your request has been approved and what you will be required to pay.