Welcome Guest. Register Now!  

LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-25-2007, 11:40 PM
Junior Member
Join Date: Jan 2007
Posts: 14
I prepared my own tax return and found that I owe the IRS money. What are my options?

I just prepared my own taxes using a tax software and it appears that I owe a significant amount of money. My first question, is what are my options?

The second question is it possible to make for me to request an installment payment plan? I am clearly worried about this being refused or rejected since I own my own home.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 09-28-2007, 11:36 AM
TaxGuru's Avatar
Tax Guru
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,413
Blog Entries: 3
What options are available when taxpayers cannot meet their tax liabiliity?

If you cannot pay the full amount of taxes you owe by due date includng the extension deadline, you should still file your return on time and pay as much as you can to avoid penalties and interest.

The IRS offers taxpayers alternative payment options and you should consider these options:

Pay by Credit Card
You can charge your taxes on your American Express, MasterCard, Visa or Discover cards. To pay by credit card, contact one of the service providers at its telephone number or Web site listed below and follow the instructions. The service providers charge a convenience fee based on the amount you are paying. Do not add the convenience fee to your tax payment. Here are the sources and website for the service providers.

* Link2Gov Corporation: 888-PAY-1040 (888-729-1040)www.pay1040.com,
* Official Payments Corporation: 800-2PAY-TAX (800-272-9829), or you visit www.officialpayments.com

Requesting an Extension of Time to Pay
Taxpayers can request a n extension of time to pay the tax liability. The IRS is willing to allow extensions of time to pay in order to assist in tax debt repayment. The taxpayer could request a short term extension of time to pay through the Online Payment Agreement application at IRS.gov or by calling 1-800-829-1040. Taxpayers qualifying for an extension of time to pay of 30 -120 days generally will pay less in penalties and interest than if the debt were repaid through an installment agreement.

Requestingt an Installment Agreement
The IRS may allow you to pay any remaining balance in monthly installments through an installment agreement. You can apply for an IRS installment agreement using our Web-based Online Payment Agreement application on IRS.gov.

The Taxpayer could also "attach a Form 9465, Installment Agreement Request, to the front of your tax return". The IRS charges a $105 fee for setting up an installment agreement. The fee is only $52 if you pay via direct debit. If your income is below a certain level (see Form 13844), you may qualify for a $43 fee.

The IRS states that "In most circumstances, the Online Payment Agreement application provides immediate notification regarding the approval of your request".

Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.

Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 » Income
 » IRA/Sep
 » Medical
 » Payroll
Forum for CPAs
Financial Planning