9 Tax Help Tips For Taxpayers Who Owe Back Taxes to Uncle Sam

Not everyone receives a refund check from the IRS every year. If you’re one of the many taxpayers who will be receiving a bill from the IRS, don’t panic.

There are many different options for you to pay your tax bill without going broke. Check out these 9 tax help tips from the IRS (www.IRS.gov) for taxpayers who owe money to Uncle Sam:

If you get a bill this summer for late taxes, you are expected to promptly pay the tax owed including any penalties and interest. If you are unable to pay the amount due, it is often in your best interest to get a loan to pay the bill in full rather than to make installment payments to the IRS.
You can also pay the bill with your credit card. The interest rate on a credit card or bank loan may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. To pay by credit card contact one of the following processing companies: Official Payments Corporation at 888-UPAY-TAX (also www.officialpayments.com/fed) or Link2Gov at 888-PAY-1040 (also www.pay1040.com) or RBS WorldPay, Inc at 888-9PAY-TAX (also www.payUSAtax.com).
You can pay the balance owed by electronic funds transfer, check, money order, cashier’s check or cash. To pay using electronic funds transfer you can take advantage of the Electronic Federal Tax Payment System by calling 800-555-4477 or online at www.eftps.gov.
An installment agreement may be requested if you cannot pay the liability in full. This is an agreement between you and the IRS to pay the amount due in monthly installment payments. You must first file all returns that are required and be current with estimated tax payments.
If you owe $25,000 or less in combined tax, penalties and interest, you can request an installment agreement using the Online Payment Agreement application at IRS.gov.
You can also complete and mail an IRS Form 9465, Installment Agreement Request, along with your bill in the envelope that you have received from the IRS. The IRS will inform you usually within 30 days whether your request is approved, denied, or if additional information is needed. If the amount you owe is $25,000 or less, provide the highest monthly amount you can pay with your request.
You may still qualify for an installment agreement if you owe more than $25,000, but a Form 433F, Collection Information Statement, is required to be completed before an installment agreement can be considered. If your balance is over $25,000, consider your financial situation and propose the highest amount possible, as that is how the IRS will arrive at your payment amount based upon your financial information.
If an agreement is approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with incomes at or below certain levels, a reduced fee of $43 will be charged.
Taxpayers who have a balance due, may want to consider changing their W-4, Employee’s Withholding Allowance Certificate, with their employer. There is a withholding calculator available on IRS.gov to help taxpayers determine the amount that should be withheld.

While these tax tips from the IRS are very useful, the most important thing to know is WHEN you need to consult expert tax help from a Certified Tax Resolution Specialist so that you do not end up in the deep end.

You may have noticed that the IRS recommends taxpayers to apply for IRS installment agreements in order to pay their back taxes. It is extremely important to know that these agreements are difficult procedures with many caveats that should not be attempted without the expert tax help of a professional Certified Tax Resolution Specialist. Hiring professional tax help to negotiate a settlement with the IRS on your behalf can significantly increase your chances of qualifying for an installment agreement or in some cases, remove financially crippling liens and bank levies.

At Tax Resolution Services, we can help you analyze your current financial situation and records to determine the exact amount owed to the IRS – and ensure you are not obligating yourself to pay a penny more than what you have to. Our team of experts and Certified Tax Resolution Specialists will help you get the tax settlement you need and move on with your life. For a free tax resolution consultation, visit www.taxresolution.com or call 1-888-699-7630.

More Tax Help, IRS News and Tax Relief Tips:

Tags: Back Taxes, certified tax resolution specialist, Free Tax Consultation, Installment Agreement, IRS debt, IRS help, IRS payment plan, Michael Rozbruch, tax attorney, tax help, tax relief, Tax Tips