If you receive a tax bill from the IRS, don’t ignore it.
The reason is because the longer you wait the more interest and penalties you will have to pay. Below are six tips to help you pay your tax debt and avoid extra charges:
1. Reply promptly. The IRS usually sends out millions of notices to taxpayers after tax season. Please read it carefully and follow the instructions. If you owe money, the notice will tell you how much and also give you a due date to send in your payment. You should respond to the notice promptly and pay the fees to avoid further interest and penalties charges..
2. Pay online. You can use an IRS electronic payment method to pay your tax bill. This is a quick, accurate and safe method. You also get a record of your payment. Options for electronic payments include the following:
Both Direct Pay and EFTPS are free services. If you pay by credit or debit card, the payment processing company will charge a fee.
3. Apply online to make payments. If you are not able to pay your tax bill in full, you can apply for an installment agreement. Most people and some small businesses as well can apply online by using the Online Payment Agreement Application on IRS.gov. If you are not able to apply your bill online, or you prefer to do so in writing, you can use Form 9465, Installment Agreement Request to apply. The best way to get the form is on IRS.gov/forms. You can download the form and print it at any time.
4. Check out a direct debit plan. A direct debit installment agreement plan is the lower-cost and hassle-free way to pay your tax bill. The set-up fee is less than half of the fee for other plans. The direct debit fee is $52 instead of the regular fee of $120. With a direct debit plan, you pay automatically from your bank account on the day you select each month. There is no need for you to write a check and make a trip to the post office. For more information, see the Payment Plans, Installment Agreements page on IRS.gov.
5. Pay by check or money order. Make your check or money order payable to the U.S. Treasury. Be sure to include the following information:
Mail it to the address listed on your notice. Do not send cash in the mail.
6. Consider an Offer in Compromise. With an Offer in Compromise, you may be able to settle your tax debt with the IRS for less than the full amount you owe. This may be an option if you are not able to pay your tax bill in full. It may also apply if full payment will create a financial hardship on you. Not everyone qualifies with this option, so you should explore all other ways to pay before submitting an Offer in Compromise. To find out if you qualify and what a reasonable offer might be, use the IRS Offer in Compromise Pre-Qualifier tool on IRS.gov.
If you have any questions, please feel free to email us.
Your comments and feedbacks are welcome.
Source: www.irs.gov.
Email: Excellent-tax@gmx.com
1. Reply promptly. The IRS usually sends out millions of notices to taxpayers after tax season. Please read it carefully and follow the instructions. If you owe money, the notice will tell you how much and also give you a due date to send in your payment. You should respond to the notice promptly and pay the fees to avoid further interest and penalties charges..
2. Pay online. You can use an IRS electronic payment method to pay your tax bill. This is a quick, accurate and safe method. You also get a record of your payment. Options for electronic payments include the following:
- IRS Direct Pay.
- Electronic Federal Tax Payment System or EFTPS.
- Credit or debit card.
Both Direct Pay and EFTPS are free services. If you pay by credit or debit card, the payment processing company will charge a fee.
3. Apply online to make payments. If you are not able to pay your tax bill in full, you can apply for an installment agreement. Most people and some small businesses as well can apply online by using the Online Payment Agreement Application on IRS.gov. If you are not able to apply your bill online, or you prefer to do so in writing, you can use Form 9465, Installment Agreement Request to apply. The best way to get the form is on IRS.gov/forms. You can download the form and print it at any time.
4. Check out a direct debit plan. A direct debit installment agreement plan is the lower-cost and hassle-free way to pay your tax bill. The set-up fee is less than half of the fee for other plans. The direct debit fee is $52 instead of the regular fee of $120. With a direct debit plan, you pay automatically from your bank account on the day you select each month. There is no need for you to write a check and make a trip to the post office. For more information, see the Payment Plans, Installment Agreements page on IRS.gov.
5. Pay by check or money order. Make your check or money order payable to the U.S. Treasury. Be sure to include the following information:
- Your name, address and daytime phone number
- Your Social Security number or employer ID number for business taxes
- The tax period and related tax form, such as “2014 Form 1040”
Mail it to the address listed on your notice. Do not send cash in the mail.
6. Consider an Offer in Compromise. With an Offer in Compromise, you may be able to settle your tax debt with the IRS for less than the full amount you owe. This may be an option if you are not able to pay your tax bill in full. It may also apply if full payment will create a financial hardship on you. Not everyone qualifies with this option, so you should explore all other ways to pay before submitting an Offer in Compromise. To find out if you qualify and what a reasonable offer might be, use the IRS Offer in Compromise Pre-Qualifier tool on IRS.gov.
If you have any questions, please feel free to email us.
Your comments and feedbacks are welcome.
Source: www.irs.gov.
Email: Excellent-tax@gmx.com
No comments:
Post a Comment