Owe Taxes? Tips from the IRS
The IRS offers many safe and easy ways to pay you tax liabilities. The following are tips explain some of them:
I- Mailed tax bills
The IRS sends bills in the U. S. mail. Try to pay soon and in full to avoid penalties and interest. If you can’t pay in full, pay as much as you can. The more you can pay the less interest and penalties you will owe for late payment. The IRS offers several payment options on IRS.gov.
II- Use IRS Direct Pay
The best way to pay your tax is with IRS Direct Pay. It’s the safe, easy and free way to pay from your own home computer by using your checking or savings account, in just five simple steps in one online session. Just click on the “Payment” tab on IRS.gov. You can now use Direct Pay with the IRS2Go mobile app.
III- Get a short-term payment plan
If you owe more tax than you can pay, you may qualify for more time- up to 120 days- to pay in full. You do not have to pay a user fee to set up a short-term full payment agreement. The IRS will charge interest and penalties until you pay in full. It’s easy to apply online at IRS.gov. If you have any questions about a tax bill from the IRS, call the phone number listed on the bill.
IV- Apply for an installment agreement
Most taxpayers who need more time to pay can apply for an Online Payment Agreement on IRS.gov. A direct debit payment plan is the hassle-free way to pay your tax liability.
The setup fee is much less than other plans and you won’t miss a payment. If you are unable to apply online, or prefer to do so in writing, use Form 9465, Installment Agreement Request. Taxpayers can use Direct Pay to make their installment payments. For more about payment plan options, visit IRS.gov.
V- Check out an offer in compromise
An offer in compromise (OIC) may let you settle your tax debt for less than the full amount you owe. An OIC may also be helpful when full payment of your tax debt may cause you financial hardship. To find out whether you qualify, you may explore your option to pay your tax before you submit one to the IRS. Use the OIC Pre-Qualifier tool to see if you qualify.
VI- Avoid tax surprises
If you are an employee, you can avoid a tax debt by requesting your employer to withhold more taxes withheld from your pay check. To do so, file a new Form W-4, with your employer. Use the IRS Withholding Calculator tool on IRS.gov to see if you’re having the right amount withheld. If you are self-employed, you may need to make or change your estimated tax payments. See Form 1040-ES, Estimated Tax for additional information.
Zaher Fallahi, IRS Tax Defense Attorney, CPA in Los Angeles and Orange Count, handles Tax controversy cases, including Offshore Accounts (OVDP, FBAR, and FATCA).
(310) 719-1040 (Los Angeles)
(714) 546-4272 (Orange County)
e-mail [email protected]cpa.com