TEN TIPS FOR TAXPAYERS WHO OWE MONEY TO THE IRS

No one likes to pay taxes and it seems to be more painful when you cannot pay the amount you owe to IRS in one payment.

The IRS has announced an effort to help struggling individuals and businesses meet their tax obligations without adding unnecessary burdens.

    1. Get a loan if possible to pay your tax bill, it is cheaper than paying installments.
   
    2.  Ask for additional time to pay. If you can pay the amount in one payment but do not have the money  
        readily available you can call 800-829-1040 or go to www.irs.gov.
   
    3. You can pay by credit card if you get reward credits this may take some of the pain away knowing you  can use those reward credits for something you want. However, there are fees involved and the interest may not be deductable.

    4.  You can pay by Electronic Funds Transfer. The amount would be deducted from your bank account using the Electronic Federal Tax Payments System. You can access this by calling 800-555-4477 or online at www.eftps.gov.

    5.  Installment Agreement. You can request an installment agreement to pay a certain amount each month but you must have all tax returns filed and be current with any estimated tax payments

   6.  If you owe 25,000 or less you can request an installment online at www.irs.gov.

   7.  You can use form 9465 to request an installment. After filling out the form you mail it to IRS and in    about 30 days IRS will let you know if it is accepted or not.

   8.  If you owe more than 25,000 you will need to complete form 433F Collection Information Statement before IRS considers your request for an installment agreement.

   9.  If the installment agreement is approved there will be a user fee depending on your income and which option you choose it can be $43, $52 or $105.

  10.  Taxpayers can also have the amount they owe taken from their paychecks by adjusting their W-4, Employee Withholding Allowance Certificate to have more tax withheld.

Comments

Post a Comment

Popular posts from this blog

Early Results from Focused Efforts on High Income Tax Cheats

            Over the past year, the Internal Revenue Service ( IRS ) has used funding from the Inflation Reduction Act on audit activities for those who earn more than $1 million and have more than $250,000 in tax debt. In that time, the IRS collected $1 billion from the group that met these criteria. The increase in funding will allow for other goals to be reached as well.           More staff has been added and technology is being updated to provide better service to all taxpayers in the coming years. The IRS will now expand its enforcement activity to include complex partnerships, large corporations, and high-income high wealth individuals who do not file tax returns. In recent years the IRS was not consistent with enforcing tax rules in this area and had fallen behind in the ways some had gotten around their tax responsibilities. These new initiatives look to bridge that gap. If you are in need of t...
Read more

Protect Yourself from Threats

            When it comes to data security threats, the challenges never end. The tactics that criminals use continue to change, but there are some basic things to keep in mind. When it comes to mass email messages or texts, the goal is to get someone to click on a link to steal information or download malware. This is phishing or smishing. An update to this scam is called clone phishing. In this variation, a real email is copied and sent to the recipient again. This time it has an attachment with malicious software or a link to a website designed to steal your personal information.           We can never be too sure how the attack will present itself, but we can be prepared with security measures to protect ourselves. Stop and be aware of warning signs. Unexpected messages with urgent tones telling you to click or download something should be examined closely. Getting a repeated message from a trusted source w...
Read more

The IRS Focuses on High Income Tax Cheats

             The Internal Revenue Service ( IRS ) continues to focus on applying the tax laws with accuracy and fairness. With that in mind, they have announced that they are restarting a program that focuses on individuals who did not file returns from 2017 to 2021 and had at least $400,000 in income. They have identified at least 125,000 cases of people who are not in compliance.           The non-filer letters will be going out every week to start the process of filing returns, collecting taxes, interest, and penalties. The basis of these letters comes from information through Forms W2, 1099 and others. Those who receive letters of this nature need to take quick action. The enforcement actions in this program are stronger than usual. That makes it critical that those who receive these letters go to a qualified tax professional . The IRS can be made aware of qualifying deductions and credits that can ch...
Read more