Save Thousands Using Proven IRS Payment Plan Guidance

Financial Considerations and Costs

While the IRS payment plans offer a lifeline, it's essential to be aware of the associated costs. Depending on the plan, you may incur setup fees, interest, and penalties on the unpaid balance. However, these costs are generally lower than the penalties for not addressing your tax debt at all. For instance, the interest rate on unpaid taxes is typically the federal short-term rate plus 3%⁵.