State financial disclosure forms show that state Senate candidate Sara Orozco finished paying off back taxes in January that she had owed from 2005.

Orozco, a Needham Democrat, said the taxes were paid off through an installment plan, with a final payment of $1,500 to $2,000 coming on January 24.

A psychologist, Orozco said the situation surfaced in 2005 when she started a practice on her own and became self employed.

She said she made estimated tax payments that year based on what she thought she would earn from her practice.

Business good But by the end of the year, her business had picked up and she made more money that she and her accountant had estimated. It turned out she owed the Internal Revenue Service more taxes.

The state forms said the total was between $5,001 and $10,000.

The IRS allowed her to set up a payment plan and she had regular payments deducted on time from her checking account, she said.

"The payments were made in a timely and responsible manner," she said.

Peggy Riley, a spokeswoman for the IRS, said she could not comment on a specific case because of privacy laws.

However, she said an installment plan for back taxes is an option the IRS makes available to all taxpayers.

Orozco is running in the Nov. 4 election against Sen. Scott Brown, R-Wrentham.

A spokesman for Brown said the senator was unavailable for comment.