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IRS offers tips for taxpayers who owe taxes

posted May 16, 2017, 10:12 PM by Zaher Fallahi

The IRS offers numerous payment options where taxpayers can pay their tax liabilities immediately or through installments. Those who receive a bill from the IRS should not ignore it, but decide on a payment plan. A delay may cost more in the end. As more time passes, the more interest and penalties accumulate.  Here are some ways to make payments using IRS electronic payment options:

 

Direct Pay

Pay tax bills directly from a checking or savings account free with IRS Direct Pay. Taxpayers receive instant confirmation once they have made a payment. With Direct Pay, taxpayers can schedule payments up to 30 days in advance. Change or cancel a payment two business days before the scheduled payment date.

 

Credit or Debit Cards

Taxpayers can also pay their taxes by debit or credit card online, by phone or with a mobile device. A payment processor will process payments.  The IRS does not charge a fee but convenience fees apply and vary by processor.

 

Those wishing to use a mobile devise can access the IRS2Go app to pay with either Direct Pay or debit or credit card. IRS2Go is the official mobile app of the IRS. Download IRS2Go from Google Play, the Apple App Store or the Amazon App Store.

 

Installment Agreement

Taxpayers, who are not able to pay their tax debt immediately, may make monthly payments. Before applying for any payment agreement, taxpayers must file non-filed required tax returns. Apply for an installment agreement with the Online Payment Agreement tool.

 

Who's eligible to apply for a monthly installment agreement online?

 

1- Individuals who owe $50,000 or less in combined tax, penalties and interest and have filed all required returns

2- Businesses that owe $25,000 or less in combined tax, penalties and interest for the current year or last year's liabilities and have filed all required returns

 

Those who owe taxes are reminded to pay as much as they can to minimize interest and penalties. Visit IRS.gov/payments for all payment options.

 

Zaher Fallahi, CPA, Tax attorney, advises taxpayers including Americans-living abroad, with their taxes, IRS representation, foreign accounts (FBAR, FATCA, OVDP, foreign trusts). Telephones (310) 719-1040 (Los Angeles), (714) 546-4272 (Orange County), or e-mail totaxattorney@zfcpa.com

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