Information For Anyone Who Owes Taxes
Finding out that you owe a large amount of taxes can be stressful, especially if you do not have the money to pay the total amount.
What you need to know is that there are options out there for people in your position.
There are ten key points that the IRS wants all individuals who need more time to pay their taxes to know.
1) If you do not have the funds to pay off what you owe in taxes, pay as much as you can afford to pay.
By doing this you will keep down the amount of added interest and penalties that you would otherwise incur.
2) There are certain situations that may allow you to qualify for an extension plan.
For example, there are time extension plans, temporary delay plans, an offer in compromise, and installment agreements.
3) If for any reason a taxpayer is not in the position to pay a bill in full it is very important that you call the number located to the immediate right of the address printed on your bill.
4) Another viable option is financing the full amount due to the IRS by way of a loan.
Typically banks and finance companies will charge a lower rate than the IRS.
5) If you are unable to pay the owed amount in full inquire about a short extension of up to 120 days.
If you qualify for this there will be no added fees and penalties may be minimized.
6) Many find that an installment agreement works well for them.
These allow taxpayers to pay through an installment plan, after a one time charge of $105.
If you can have payments debited directly from your bank account you will benefit from a reduced payment of only $52.
7) The application to apply for the installment plan is located on the IRS website.
The, Installment Agreement Request; form 9465.
You can also obtain this form by contacting the IRS by phone; the number is located on your bill.
8) If you qualify for an offer in compromise, you may be able to settle with the IRS for an amount less than what is listed on your bill.
The IRS will typically expect payment on an offer in compromise to be paid in full.
9) A Federal Tax Lien can still be put into effect even after an installment agreement has been set up.
10) If you take no action toward trying to pay your taxes the IRS has every right to take tax collection action.
Visit the IRS website at IRS.
gov, if you need any further tax extension information.
What you need to know is that there are options out there for people in your position.
There are ten key points that the IRS wants all individuals who need more time to pay their taxes to know.
1) If you do not have the funds to pay off what you owe in taxes, pay as much as you can afford to pay.
By doing this you will keep down the amount of added interest and penalties that you would otherwise incur.
2) There are certain situations that may allow you to qualify for an extension plan.
For example, there are time extension plans, temporary delay plans, an offer in compromise, and installment agreements.
3) If for any reason a taxpayer is not in the position to pay a bill in full it is very important that you call the number located to the immediate right of the address printed on your bill.
4) Another viable option is financing the full amount due to the IRS by way of a loan.
Typically banks and finance companies will charge a lower rate than the IRS.
5) If you are unable to pay the owed amount in full inquire about a short extension of up to 120 days.
If you qualify for this there will be no added fees and penalties may be minimized.
6) Many find that an installment agreement works well for them.
These allow taxpayers to pay through an installment plan, after a one time charge of $105.
If you can have payments debited directly from your bank account you will benefit from a reduced payment of only $52.
7) The application to apply for the installment plan is located on the IRS website.
The, Installment Agreement Request; form 9465.
You can also obtain this form by contacting the IRS by phone; the number is located on your bill.
8) If you qualify for an offer in compromise, you may be able to settle with the IRS for an amount less than what is listed on your bill.
The IRS will typically expect payment on an offer in compromise to be paid in full.
9) A Federal Tax Lien can still be put into effect even after an installment agreement has been set up.
10) If you take no action toward trying to pay your taxes the IRS has every right to take tax collection action.
Visit the IRS website at IRS.
gov, if you need any further tax extension information.
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