If you owe tax to the Internal Revenue Service here are some different ways to take care of the problem
Tips for Taxpayers Who Owe Taxes
1. Tax bill payments.
If you get a bill from the IRS , you should pay it as soon as possible to save money. You can pay by check, money order, cashier’s check or cash. If you cannot pay it all, consider getting a loan to pay the bill in full. The interest rate for a loan may be less than the interest and penalties the IRS must charge by law.
2. Electronic Funds Transfer.
It is easy to pay your tax bill by electronic funds transfer. Just visit IRS.gov and use the Electronic Federal Tax Payment System.
You may also use EFTPS to pay your taxes by phone at 800-555-4477.
3. Credit or debit card payments.Yes, you can pay by credit card.
You can also pay your tax bill with a credit or debit card. Even though the card company may charge an extra fee for a tax payment, the costs of using a credit or debit card may be less than the cost of an IRS payment plan.
To pay the IRS by credit or debit card, contact one of the processing companies listed at IRS.gov.
4. More time to pay.
You may qualify for a short-term agreement to pay your taxes. This may apply if you can fully pay your taxes in 120 days or less. Call us today to work out a payment solution.
5. Installment Agreement.
If you can’t pay in full at one time and can’t get a loan, you may want to apply for a monthly payment plan. If you owe $50,000 or less, we can apply using the IRS Online software Payment Agreement application.
It’s quick and easy. If approved, we will notify you immediately.
We can arrange to make your payments by direct debit.
This type of payment plan helps avoid missed payments and may help avoid a tax lien that would damage your credit.
Taxpayers may also apply using IRS Form 9465, Installment Agreement Request. If you owe more than $50,000, you must also complete Form 433F, Collection Information Statement. For approved payment plans the one-time user fee is $105 for standard and payroll deduction agreements. The direct debit agreement fee is $52. The fee is $43 if your income is below a certain level.
6. Offer in Compromise.
The IRS Offer-in-Compromise program allows you to settle your tax debt for less than the full amount you owe. An OIC may be an option if you can’t fully pay your taxes through an installment agreement or other payment alternative.
The IRS may accept an OIC if the amount offered represents the most IRS can expect to collect within a reasonable time. Use the OIC Pre-Qualifier tool to see if you may be eligible before you apply.
The tool will also direct you to other options if an OIC is not right for you.
7. The new Fresh Start program.
If you’re struggling to pay your taxes, the IRS Fresh Start initiative may help you. Fresh Start makes it easier for individual and small business taxpayers to pay back taxes and avoid tax liens.
8. Check withholding.
You may be able to avoid owing taxes in future years by increasing the taxes your employer withholds from your pay. To do this, file a revised Form W-4, Employee’s Withholding Allowance Certificate, with your employer. The IRS Withholding Calculator tool at IRS.gov can help you fill out a new W-4.
9. If you cannot pay the Internal Revenue Service.
If you cannot pay the Internal Revenue Service it is possible for your tax case to be put into an economic tax hardship. The Internal Revenue Service will need a current financial statement and they will make a determination based on your ability to pay.
Contact us today and we can fully review your individual circumstance and recommend to you a solution or resolution to immediately resolve your tax situation.
 
Owe IRS Tax – Different ways to take care of Owing the IRS