In the vast majority of cases, to put taxes on a credit card is the worst move you could make because of the interest. A fate worse than debt Simply put, many people would rather owe money to a credit-card company than to the IRS, which can garnish wages and take property from those who fail to pay. But choosing to pay on an IRS installment plan may be a good option for people who would be tempted to let a big credit-card balance slide. Installment plans typically last up to three years and participants decide how much they want to pay each month and when the payment will be due. Roberts said most people who pay by installment plan pay off their bills in a year and a half.
Most people don t want to keep things dragging on forever.
With credit cards, people could get caught in a cycle of debt and could find themselves charging their 1999 taxes when they have yet to pay off 1998's bill. Fiscal discipline, IRS-style With installment plans, participants agree to stay current on future tax obligations. If they can't pay the following year s taxes by April 15, the installment plan is terminated and the entire amount becomes due. Nearly 2.8 million people paid their taxes with installment plans in 1998, Roberts says. But the financial discipline imposed by an IRS installment payment plan comes with a pretty hefty price tag.