Tuesday, August 23, 2011

12 Tax Tips for Taxpayers Who Owe the IRS

1. When you contact the IRS about a past due amount, do NOT lie to them. It is a Federal offense to lie to a Government Agent.

2. When you contact the IRS, they will ask for your employer information and your bank information. If you don't want to provide this information to the IRS, then have a tax professional make the calls for you.

Note: It's not like the IRS can't find out where you bank, however, it's best, for you, to pay your tax bill with a cashier's check, not your personal check.


3. If you get a tax bill in the mail, respond immediately. If you can pay the amount, do so as quickly as possible.

4. If you need more time, you can contact the IRS and request a payment date in the future.

5. You can use credit cards to pay your tax bill. visit www.pay1040.com or call Link2Gov, RBS World Pay, Inc, or visit www.payUSAtax.com or www.officialpayments.com/fed

6. You can also use Electronic Funds Transfer by electronic funds from check, money order, cashier's check or cash. Call 800 555-4477

7. You can request an Installment Agreement and pay the taxes on a monthly bases. You MUST file all past due returns to qualify for the Installment Agreement

8. If you owe $25,000 or less (total) you can use the Online Payment Agreement application at www.irs.gov

9. Or you can complete Form 9465 and mail the Installment Agreement Request to your IRS office

10. If you owe more than $25,000 you will be required to complete Form 433F. We strongly advise you to get help with completing this Form.

11. There is a user fee to create a new Installment Agreement. The fees range from$43 to $105.

12. You can have more money taken out of your payroll check to pay off your IRS debt, just by changing your W-4 Form with your employer.
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