If you have an IRS tax debt, you may be wondering just how you will pay your tax bill. For some people, they aren't certain where they will get the funds to pay it off. Others are more concerned with security and identity fraud. Fortunately, the IRS provides many options to taxpayers. This page will help you decide which of the IRS taxes payment options you should choose.
Pay Your Debt in Full with Your ReturnIf you believe you can pay the full amount of your taxes when you file, there are three IRS taxes payment options. You can pay electronically, by mail, or in person.
Those who choose electronic IRS taxes payment options can do so along with the e-file of their tax return. There is a choice of paying with a credit card or by electronic funds withdrawal. The IRS provides a list of reputable e-pay service providers and how to contact them. You will not have to worry that the wrong person will get a hold of your credit card or banking information. Electronic payments are available for both individual taxpayers and businesses.
One of the most common IRS taxes payment options is simply mailing a check. To ensure that your check arrives safely, adhere to the following instructions carefully.
- Make your check out to the "United States Treasury" and not the IRS.
- Include your completed payment voucher (1040-V) with the check.
- Also include the tax return you are filing with it.
- Mail it to the address assigned to taxpayers from your state.
These rules are for individual taxpayers and not businesses. If you are a business, you will have a different set of rules on making your IRS taxes payment by mail. If you have difficulty figuring out which address to mail to, you can call the IRS directly or look it up online.
Those who feel uncomfortable with the previous two IRS taxes payment options may wish to pay in person. The IRS has many office locations all over the country that will accept your payments. Call the IRS or look up locations online. Before you get in the car, make sure it is not an IRS holiday and that you are going to be there during office hours. Also, be certain that the location you have decided on can accept an IRS taxes payment.
Pay Your Debt in InstallmentsNot everyone can hand over a lump sum to the IRS. Fortunately, you can make an IRS taxes payment monthly until you pay off your entire debt. If you have a tax debt under $10,000, it is very easy to enter into a payment agreement with little hassle involved. You can apply electronically using the Online Payment Agreement application or you can attach a Form 9465 to the front of your tax return. On your form, enter in the amount and date you wish to make payments.
All of the IRS taxes payment options you have when paying in full are available for those making installments. However, there is a fee to set up a payment plan. For most, you will be charged $105 in addition to your first payment. For those who indicate they want their payments automatically deducted from their account, the fee is $53. If you qualify as a low income taxpayer, the set up fee is $43.
If your debt is over $10,000, you may find that the IRS will push for higher, unaffordable payments or ask you for financial information you aren't comfortable sharing. If you have a higher tax debt, consult a tax professional about your IRS taxes payment options. Businesses may also find that they need assistance setting up an installment agreement, if they feel that it is the best of the IRS taxes payment options.
If you still need help figuring out which of these IRS taxes payment options are right for you, consult a professional. Call now or fill out the form below for a free tax debt consultation on your IRS taxes payment options! We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.