If
you are financially unable to pay your tax debt immediately, you may be able to
make monthly payments through an installment agreement with the IRS.
Before
applying for a payment agreement, you must file all required tax returns.
You
may be eligible to apply for an online payment agreement:
·Individuals must owe $50,000 or less in combined individual income tax,
penalties and interest, and have filed all required tax returns.
·Business must owe $25,000 or less in payroll taxes and have filed all
required tax returns.
Even
if you are ineligible for an online payment agreement, you can still pay in
installments:
·Complete and mail Form 9465 and Form 433-F
·Call 800-829-1040 or the phone number on your bill or notice.
Things
to Consider
·Penalties and interest continue to accrue until your balance is paid in
full.
·Your future refunds will be applied to your tax debt until it is paid in
full.
·There may be a restatement fee if your agreement goes into default.
·You must pay at least your minimum monthly payment---on time.
·You must file all required tax returns on time.
·You must contact the IRS if you need to make any changes to your agreement.
·Ensure the IRS has your current address if you move by filing Form 8822
Change of Address.
·Include your name, address, SSN, daytime phone number, tax year and return
type on your payment.
Currently,
the IRS One Time Fee for a standard installment agreement or payroll deduction
agreement is $120 or $52 if you choose to pay through a direct debit from your
bank account.
This article was written by Donald M.
Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net