- Pay as much as possible now to minimize interest and penalties.
- Request an Offer in Compromise.
- Finance the full payment of your tax liability through a loan. The interest rate and fees charged by a bank or credit card company are usually lower than interest and penalties imposed by the IRS.
- Ask for a short amount of additional time, up to 120 days, to pay in full. No fee is charged for this type of payment arrangement and this option may minimize the amount of penalties and interest you incur.
- Consider an installment agreement. This arrangement allows you to make monthly payments after a one-time fee of $105 is paid. If you choose to pay through a Direct Debit from your bank account, the fee is reduced to $52. Lower-income taxpayers may qualify for a reduced fee of $43. Keep in mind however even if you set up an installment agreement, the IRS may still file a Notice of Federal Tax Lien to secure the government’s interest until you make the final payment.
- Doing nothing is not an option. At the very least pick up the phone and call the IRS or your state department of revenue. Or call me.
Check out some of these other links:
Payment Options - Ways To Make a Payment
Other Ways to Resolve Tax Debt That Could Save You Money
Online Payment Agreement Application
Form 9465, Installment Agreement Request
Publication 966, The Secure Way to Pay Your Federal Taxes
Publication 594, The IRS Collection Process
John R. Dundon, EA - 720-234-1177 - jddundon@comcast.net - http://prep.1040.com/jd/ - Enrolled with the United States Department of Treasury to Practice before the IRS - Enrolled Agent # 85353. Under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent - I am a Federally Authorized Tax Practitioner (USC 31 Section 330 + IRC 7525a.3.A) regulated under US Treasury Cir. 230.
Other Ways to Resolve Tax Debt That Could Save You Money
Online Payment Agreement Application
Form 9465, Installment Agreement Request
Publication 966, The Secure Way to Pay Your Federal Taxes
Publication 594, The IRS Collection Process
John R. Dundon, EA - 720-234-1177 - jddundon@comcast.net - http://prep.1040.com/jd/ - Enrolled with the United States Department of Treasury to Practice before the IRS - Enrolled Agent # 85353. Under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent - I am a Federally Authorized Tax Practitioner (USC 31 Section 330 + IRC 7525a.3.A) regulated under US Treasury Cir. 230.