Hi - I am new to using a payment plan to pay my tax debt.
I don't have the funds right now to pay it in full. If I can pay the remaining balance off early on my plan later in the year, Do I still have to pay all the interest I signed on for when making the year-long plan?
Is there any downsides or consequences to paying out a payment plan early?
Hi @Ashley2025
No, there are no consequences for paying off a payment plan early, in fact, we prefer that you do. You are only liable for the interest that is applied to the current balance.
If you pay off the payment arrangement 3 months early (for example), you aren't required to pay the associated interest for that 3 month period. This is because there isn't any debt outstanding.
Hi @Ashley2025
No, there are no consequences for paying off a payment plan early, in fact, we prefer that you do. You are only liable for the interest that is applied to the current balance.
If you pay off the payment arrangement 3 months early (for example), you aren't required to pay the associated interest for that 3 month period. This is because there isn't any debt outstanding.
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