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Six Tips for Taxpayers Who Owe IRS Back Taxes

Six Tips for Taxpayers Who Owe IRS Back Taxes

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Six Tips for Taxpayers Who Owe

IRS Back Taxes

Ask for Additional Time to Pay

If you are unable to pay your taxes by the due date, ask for some extra time to pay your debt. The IRS may grant 60 to 120 additional days for you to pay your debt in full.

Pay with a Credit Card

The IRS accepts credit card payments. Using a credit card to pay back taxes is advantageous if the interest rate on the card is lower than IRS penalties and interest.

Or Pay by Electronic Fund Transfer

You can pay your tax balance by electronic fund transfer, check, money order or even cash (sending cash through the mail is generally not recommended).

Ask for Installment Agreement

If you can’t pay your tax liability in full, an installment agreement may be your best bet. An installment agreement is an agreement between you and the IRS to pay the amount due in monthly installments.

Consider Your Eligibility for an Offer in Compromise

If you have a limited ability to pay your tax liability, the IRS may be willing to settle less then what you owe. But keep in mind that not everyone is eligible. Because financial disclosure is involved, consult a tax professional before applying.

Adjust Your Withholding

If you owe taxes at the end of the year, you may want to consider adjusting your W-4 withholding with your employer. IRS.gov’s withholding calculator can help you make sure the correct amount of taxes is being withheld from your pay.

To Learn MoreVisit

www.taxassistancegroup.org

Or Call(855) 549-7829

Work cited: U.S. Department of the Treasury, Internal Revenue Service. Ten Tips for Taxpayers Who Owe Money to the IRS. IRS Pub. 2011-14. Washington: GPO, 2011.