Although the majority of Americans receive a tax refund from the IRS every year, there are still many taxpayers who owe money and are unable to pay the amount all at once. For those individuals who struggle to pay their taxes, the IRS has announced a number of methods by which they can pay their bill.
The goal of these programs is to help individuals struggling with their tax obligations to get a fresh start and meet their tax responsibilities, without adding any excess burden.
1. Tax bill payments. The IRS expects any amount billed for late taxes to be paid promptly and in full, including any penalties and interest. If the taxpayer is unable to pay this amount, it is often in their best interest to consider getting a loan in order to pay the bill in full rather than pay it in installments over time.
2. Additional time to pay. Based on the circumstances of the individual, some taxpayers may be granted additional time to meet their tax obligations. Additional time, though usually brief, may be requested through the Online Payment Agreement application at their website.
3. Installment Agreement. Those who cannot immediately pay the amount in full may request an installment agreement. This is an agreement between the taxpayer and the IRS in which the individual agrees to pay the amount owed through monthly installments, instead of one large payment. Before pursuing this kind of agreement, a taxpayer must first file all the required returns and be current with their estimated tax payments.
4. Online Payment Agreement. For those who owe $25,000 or less in combined tax, penalties and interest, individuals may request an installment agreement using the Online Payment Agreement Application found at the IRS' website.
5. Collection Information Statement. Those who owe more than $25,000 in combined tax, penalties and interest may still qualify for an installment agreement. They are, however, required to complete a Form 433F, Collection Information Statement, in order to be considered.
6. User fees. In the case that an installment agreement is approved, a one-time user fee will be charged. The user fee applied for new agreements typically amounts $105, or $52 in cases where payments are deducted directly from an individual's bank account. For those lower-income individuals who meet the requirements, the fee may be reduced to $43.
7. Check withholding. Taxpayers with an outstanding amount due to the IRS may want to consider changing their W-4, Employee's Withholding Allowance Certificate. This can be done through the individual's employer.
The Lee Law Firm's foreclosure lawyers have many years of experience in all aspects of IRS debt problems. They have extensive experience with IRS problems and provide Dallas tax clients with a plan to eliminate their tax debts and obtain a solid financial future.
0 comments:
Post a Comment