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IRS Tips to Help People Pay Their Taxes

posted Aug 16, 2015, 9:31 PM by Zaher Fallahi

The IRS offers the following ways to pay taxes you owe. Check out these payment tips:

 

1-      Pay your tax bill.  If you get a bill, you should pay it in full if you can as soon as possible. The more you can pay the less interest and penalties you will accumulate on late payment. You may make economic sense using your credit card or obtain another loan if you can get a better interest rates. The IRS offers several payment options on IRS.gov. 

2-      Use IRS Direct Pay.  The best way to pay your taxes is with IRS Direct Pay. It’s the safe, easy and free way to pay from your checking or savings account. You can pay your tax in just five 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.

3-      Get a short-term payment plan.  If you owe more tax than you can afford to 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. However, the IRS will charge interest and penalties until you pay in full. It’s easy to apply online at IRS.gov. If you get a bill from the IRS, you may call the phone number listed on the letter or just call 800-829-1040 for help. Depending on the time of the day, you may have wait on the telephone for some time.

4-      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. The fee for this plan is much less than other plans and you won’t miss a payment. If you can’t apply online, or prefer to do so in writing, use Form 9465, Installment Agreement Request. Individuals can use Direct Pay to make their installment payments. For more information about payment plan options, visit IRS.gov.

5-      Check out an offer-in-compromise (OIC).  If you qualify, an offer in compromise, may let you settle your tax debt for less than the full amount you owe. An Offer-In-Compromise may be an option if you can’t pay your tax in full. It may also apply if full payment will cause a financial hardship. Not everyone qualifies, so make sure you explore all other ways to pay your tax before submitting an OIC application to the IRS. Use the OIC Pre-Qualifier tool to see if you qualify. It will also tell you what a reasonable offer amount might be.

6-      Change your withholding or estimated tax.  If you work for someone, you can avoid a tax bill at the time of filing your returns by having more taxes withheld from your pay. For this option, file a new Form W-4, Employee’s Withholding Allowance Certificate, with your employer. The IRS Withholding Calculator tool on can help you fill out the form. If you are self-employed you may need to make or change your estimated tax payments. See Form 1040-ES, Estimated Tax for Individuals for learn more.

 

Zaher Fallahi, CPA, Tax Attorney, practices as an IRS Defense Tax Attorney and assists taxpayers including Americans Living Abroad and Non-Resident Aliens subject to the US tax law, in resolving their tax controversies with respect to their Offshore Voluntary Disclosure Program (OVDP), Report of Foreign Bank and Financial Accounts (FBAR), Foreign Account Tax Compliance Act (FATCA) and Foreign Trust.  The firm also handles Offer-In-Compromise and unfiled taxes. Zaher Fallahi, CPA has been a Los Angeles dental CPA and physicians’ CPA since 1992. Telephones: (310) 719-1040 (Los Angeles), (714) 546-4272 (Orange County), e-mail taxattorney@zfcpa.com

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