Ten Tips for Taxpayers Who Owe Money to the IRS
For those taxpayers who are among those that owe money to the Internal Revenue Service, there are a number of ways to pay with the new policies and programs that the IRS has announced. If you have received a tax bill for late taxes, it is advisable to obtain a loan to pay the balance of the bill rather than make installment payments. The IRS may grant additional time to pay based on your circumstances by filling out the Online Payment Agreement on the IRS website. Because credit card interest is most likely lower than the interest and penalties you will incur by the IRS, you have the option to pay your tax bill with your credit card. You may also pay by check, money order, cashier’s check, cash or electronic funds transfer. Although not advisable, you may work out installment payments with the IRS if you owe $25,000 or less in combined tax, penalties and interest. Even if you owe more than $25,000, you may still qualify; you are required to fill out Form 433F, Collection Information Statement, for the IRS to determine if you may qualify. If you do qualify for an installment agreement, then you will have to pay a one-time user fee. Consider changing your W-4, Employee’s Withholding Allowance Certificate, as well if you have a balance due.
For more information, please contact Wood, Atter & Wolf, P.A., in Jacksonville and Ponte Vedra Beach, Florida.
