There are many options that you have to take care of back IRS tax debt and the best people to consult is former IRS agents, managers and teaching instructors that know the system.
We have over 206 years of professional tax experience of over 100 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS.
After a very brief review of your case we can let you know the fastest, cheapest, and the best way to resolve your IRS tax problem. Because of all years of experience we know every single option available to take care of this back IRS tax debt.
Call us today for free initial tax consultation and here’s the truth about dealing with your various options and how to take care of your back IRS tax debt.
Facts to Know:
1. If you’re not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty.
2. There’s also a penalty for failure to file a tax return, so you should file timely even if you can’t pay your balance in full. It’s always in your best interest to pay in full as soon as you can to minimize the additional charges.
Paying electronically is a convenient way to pay your federal taxes online, by phone, or from a mobile device. Electronic payment options are available on our payments page and the IRS2Go app.
When paying electronically, you can schedule your payment in advance. You’ll receive instant confirmation after you submit your payment. The IRS uses the latest encryption technology making electronic payments safe and secure. It’s quick, easy, and much faster than mailing in a check or money order.
IRS Direct Pay is a secure service you can use to pay your taxes for Form 1040 series, estimated taxes or other associated forms directly from your checking or savings account at no cost to you.
You can also modify or cancel your payment up to two business days before your scheduled payment date.
You can access your federal tax account information through a secure login at irs.gov/account. You can view the amount you owe along with details of your balance, view 18 months of payment history, access Get Transcript, and view key information from your current year tax return.
In addition, you can pay using your bank account or a debit or credit card or apply for an online payment agreement if you need more time to pay.
If you decide to pay by mail, enclose a check or money order with a copy of your tax return or notice. Make it payable to the United States Treasury and provide your name, address, daytime phone number, social security number, tax year, and form or notice number (e.g., 2017 Form 1040) on the front of your payment. This is very important to make sure IRS processes the check correctly.
If you can’t pay in full, you should pay as much as possible to reduce the accrual of interest on your account. . You should consider financing the full payment of your tax liability through loans, such as a home equity loan from a financial institution or a credit card.
The interest rate and any applicable fees charged by a bank or credit card company are usually lower than the combination of interest and penalties set by the Internal Revenue Code.
Full Payment Agreements of up to 120 days
If you can’t pay in full immediately, you may qualify for additional time –up to 120 days– to pay in full. There’s no fee for this full payment agreement; however, interest and any applicable penalties continue to accrue until your liability is paid in full.
Installment Agreements
If you’re not able to pay your balance in full immediately or within 120 days, you may qualify for a monthly installment agreement.
Different Options to pay are:
• Direct debit from your bank account,
• Payroll deduction from your employer,
• Payment by Electronic Federal Tax Payment System (EFTPS),
• Payment by credit card via phone or Internet,
• Payment via check or money order, or
• Payment with cash at a retail partner.
The IRS charges a user fee when you enter into a standard installment agreement or a payroll deduction agreement
Very important: Before your installment agreement request can be considered, you must be current on all filing and payment requirements.
Taxpayers in an open bankruptcy proceeding aren’t eligible. You must specify the amount you can pay and the day of the month.
You should base your monthly installment payment amount on your ability to pay and it should be an amount you can pay each month to avoid defaulting. Your payment date can be any day from the first to the 28th.
. Usually within 30 days, the IRS will respond to your request to advise you if it has approved it, denied it, or needs more information.
Installment agreements by direct debit and payroll deduction enable you to make timely payments automatically and reduce the possibility of default. These convenient payment methods also allow you to avoid the time and expense of mailing monthly payments.
For a direct debit installment agreement, you must provide your checking account number, your bank routing number, and written authorization to initiate the automated withdrawal of the payment. Apply by using the OPA application, contacting us by phone or in person (by appointment only), or mailing us Form 9465.pdf with your checking account number and bank routing number.
For a payroll deduction installment agreement, submit Form 2159.pdf, Payroll Deduction Agreement. Your employer must complete Form 2159, as it’s an agreement between you, your employer, and the IRS. In some situations, the IRS may set up a regular installment agreement for you and convert it to a payroll deduction agreement upon receipt of the completed Form 2159 from your employer.
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Offer in Compromise
If you can’t full pay under an installment agreement, you may propose a partial payment installment agreement or an offer in compromise (OIC).
An OIC is an agreement between you and the IRS that resolves your tax liability by payment of an agreed upon reduced amount.
Before the IRS will consider an offer, you must have filed all tax returns, made all required estimated tax payments for the current year, and made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
Taxpayers in an open bankruptcy proceeding aren’t eligible to enter into an OIC.
To confirm eligibility and ensure use of the current application forms, use the Offer in Compromise Pre-Qualifier tool.
Temporarily Delay Collection, call us today for many more details
If you can’t pay any of the amount due because payment would prevent you from meeting your basic living expenses, you can request that the IRS delay collection until you’re able to pay.
If the IRS determines that you can’t pay any of your tax debt because of financial hardship, the IRS may temporarily delay collection by reporting your account as currently not collectible until your financial condition improves.
Being currently not collectible doesn’t mean the debt goes away. It means the IRS has determined you can’t afford to pay the debt at this time.
Penalties and interest continue to accrue until you’ve paid off the debt in full.
IRS may ask you to complete a Collection Information Statement (Form 433-F.pdf, Form 433-A.pdf or Form 433-B.pdf) and provide proof of your financial status (including information about your assets and your monthly income and expenses) before approving your request to delay collection.
The IRS may temporarily suspend certain collection actions, such as issuing a levy Topic until your financial condition improves.
However, we may still file a Notice of Federal Tax Lien while your account is suspended.
Responding to Your IRS Notice
It’s important to respond to an IRS notice. If you don’t pay your tax liability in full or make an alternative payment arrangement, the IRS has the right to take collection action.
Call us today to learn more about different options to take care of your IRS debt.
We will let you know if you are eligible for temporary hardship, payment agreement or may be able to settle your debt to the offer in compromise program.
We are a full-service IRS tax firm.
Options To Take Care of Back IRS Tax Debt + Former IRS Agents + IRS Payment Options
