Do You Owe IRS???

 

 

FREE 2008 Tax Return Review Details
CPA Moms - Services Offered
Tax Preparation
Electronic Filing
Do Your Own Taxes - Fee from Refund
Enrolled Agents
Tax Moms
Cash from Western Union
CPA Moms
Representation before IRS
Non Profit Tax Services
Accounting
Bookkeeping
CPA Loan Letter
Bankruptcy
Claiming Social Security Disability
Divorce & Taxes
Offer in Compromise
Installment Payment for Taxes
Credit Reports
Social Security
Deliquent Tax Returns
Garnishment
Installment Tax Payment Home Page
Latest IRS Payment Method
Articles on Paying IRS
Additional Resources
Want to Join the Moms?
Questions for CPA Moms?




Death & Taxes

We have Information to Help You with Either


Got Question for a CPA Mom?


IRS wants you to retire Financially Free!     We will answer your questions and give you options about how to become Financially Free when you retire

Tax answers/options when you sell your Home.      We will answer your questions about the tax free home sales and give you options on tax free exchanges

So, You got a letter from IRS?  We can help.    Letters from IRS are scary. We will answer your questions at no charge.

S-Corp, LLC, C-Corp, Partnership - Your Choice?    Selecting the correct Business Entity is confusing.  We will give you the tax options of each Business Entity.

How not to pay taxes when you sell income property.    We will explain how to do a tax free exchange & not pay taxes when you sell your income property.

To pay for Services - Please click on Paypal Logo below



 

 

 


Installment Agreements

 

IRS encourages taxpayers to pay what they owe as quickly as possible. For those individuals or businesses not able to resolve a tax debt immediately, an installment agreement can be a reasonable payment option. Installment agreements allow for the full payment of the tax debt in smaller, more manageable amounts.

To be eligible for an installment agreement, all returns that are due must first be filed.

Installment agreements generally require equal monthly payments. The amount of an installment payment will be based on the amount owed and on the taxpayer’s ability to pay that amount within the time legally available for the IRS to collect. By law, the IRS has the authority to collect outstanding federal taxes for ten years from the date of assessment. For taxpayers that enter into an installment agreement, the IRS may require a signed waiver to extend the time IRS can collect.

Taxpayers who already have an installment agreement from a previous amount owed may still find help. All of the amounts owed could be included in one installment agreement. Additionally, a Collection Information Statement may have to be completed to further illustrate their financial situation.

As a condition of an installment agreement, any refund due in a future year will be applied against the amount owed. Therefore, taxpayers may not get all of their refund if they owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. The IRS will automatically apply the refund to the taxes owed.  If the refund does not take care of the tax debt; then the installment agreement continues until all of the terms are met.

Interest does not Stop with an Installment Agreement

An installment agreement is more costly than paying all the taxes owed now. Penalties and interest continue to be charged on the unpaid portion of the debt throughout the duration of an installment agreement.

NOTE: The interest rate on a loan or on a credit card may be lower than the combination of penalties and interest imposed by the Internal Revenue Code. It is best to pay as much as possible before entering into an agreement.

How Best to Make Timely Installment Payments

The IRS strongly recommends one of the following options for payment under an installment agreement:

  • Direct Debit - electronic transfers from a checking account, or
  • Payroll Deduction - deductions that an employer takes from wages or salary. Call toll free 1-800-829-1040 to set this option up.

These forms of payment help to reduce the burden of mailing the payments, save postage, help ensure timely payments, and decrease the likelihood that the agreement will default. If the agreement defaults, enforced collection action could be taken.

Installment agreement payments can also be made by electronic funds transfer (www.eftps.gov), credit card (www.officialpayments.com or www.pay1040.com), personal or business check, money order, cashier’s check, certified funds or cash (cash payments can only be made in person at a local IRS Office-do not send cash through the mail).

Fees to Set-up an Installment AgreementI

WASHINGTON — Nov. 13, 2006, The Internal Revenue Service announced today increases in user fees for installment agreements. The increases — the first since the fees were implemented in 1995 — result from increases in labor and other costs of processing the various applications.

The Office of Management and Budget has directed federal agencies to charge user fees reflecting the full cost of goods or services “that convey special benefits to recipients beyond those accruing to the general public.”

Effective Jan. 1, 2007, the following fees will increase:

  • The fee for new direct debit installment agreements, where payments are deducted directly from a taxpayer’s bank account, will increase from $43 to $52.

  • The fee for other new installment agreements will increase from $43 to $105.

  • The fee to restructure an existing or reinstate a defaulted installment agreement will increase from $24 to $45.

The new fees will also apply to installment agreements made using the Online Payment Agreement application on this Web site, which became available to the public on Oct. 16.

It is always in the taxpayer’s best interest to quickly pay any outstanding tax debts in full to minimize the amount of interest and penalty. But for those who cannot resolve their tax debt immediately, however, an installment agreement can be a reasonable payment option. To be eligible for an installment agreement, a taxpayer must first file all tax returns that are required to be filed and be current with estimated tax payments if applicable.

In fiscal year 2006, almost 2.8 million taxpayers established installment agreements to pay their tax bills.


How to Set-up an Installment Agreement

Taxpayers wishing to pay off a tax debt through an installment agreement, and owe:

  • $25,000 or less in tax, can call the number on the bill or notice (have the bill or notice available, along with the social security number). A fill-in Request for Installment Agreement, Form 9465, is available online that can be mailed to the address on the bill.
  • More than $25,000 in tax, may still qualify for an installment agreement, but a Collection Information Statement, Form 433F may need to be completed. Call the number on the bill or mail the Request for Installment Agreement, Form 9465 and Form 433F to the address on the bill.

A notification is sent to the taxpayer advising whether the terms of the installment agreement have been accepted or if they need to be modified.

The IRS generally may still file a Notice of Federal Tax Lien to secure the government’s interest in the taxpayer's personal or real property until final payment is made. The notice filing could have a negative impact on the taxpayer’s credit rating.

Enforced Collection Actions

Generally, IRS enforced collection actions (i.e., levy against personal or real property) are not made while an installment agreement request is being considered, or:

  • While an agreement is in effect,
  • For 30 days after a request for an agreement has been rejected, and
  • For any period while a timely appeal of the rejection or termination is being evaluated by the IRS.

Payments Should be Made Timely

Throughout the term of an installment agreement, payments must be made on time. If payments cannot be made due to a change in financial condition, taxpayers should contact the IRS immediately. Failure to make timely payments could default the agreement. A defaulted installment agreement could subject a taxpayer’s account to enforced collection action and potentially have a negative effect on a taxpayer’s credit standing.

Annual Statements of Balance Due

In accordance with the law, installment agreement taxpayers receive an annual statement from the IRS. The statement provides the amount owed at the beginning of the statement period, the payments (credits) posted to account(s), any fees or assessments, and the ending balance. Currently, the annual statement is sent each year in July.


Articles

  • Tax Relief Program Information
    Just about everyone in the U.S. tax system tries to voluntarily comply with the tax laws. We are required to file tax returns and pay the correct tax amount owed to the government. Not complying, threatens...
  • Know A Tax Cheat? Get Paid To Tell The IRS
    According to the IRS, taxpayers underpay their taxes by some $300 billion. If you know someone that is contributing to that deficit, the IRS may be willing to pay you up to $10 million for the information...
  • IRS Lock-In Letters - Whats An Employer To Do?
    Employers often ask employees to designate the amount of tax withholdings for paychecks. Occasionally, employees will fail to withhold a sufficient amount in the eyes of the IRS. The IRS will then send...
  • Do Income Taxes Threaten Your Well Being?
    Few things threaten your well-being like the harassment and anxiety of persistent tax problems. Most people make 3 mistakes that get them in trouble with the IRS. They procrastinate. They attempt to represent...
  • Collecting The Levy
    The Financial Management Service (FMS) is a bureau of the Department of the Treasury, to provide a centralized debt collection service to most federal agencies. The FMS has begun utilizing two Congressionally...
  • Your IRS Tax Appeal Rights
    Are you in the middle of a disagreement with the IRS? One of the guaranteed rights for all taxpayers is the right to appeal. If you disagree with the IRS about the amount of your tax liability or about...
  • Dealing with the IRS
    It's funny how three simple letters can create such fear and loathing in your average citizen. But the IRS are people too. Keep this in mind and you'll find that dealing with the IRS will be easy and stress...
  • Correspondence From The IRS - Yikes!
    It's a moment every person dreads. You pick up the mail and there is an envelope from the IRS. It's not a refund check. What do you do?Don't PanicEach year, the IRS sends out millions of "correspondence...
  • Industry Tax Issue Resolution Program
    For roughly the last ten years, the internal revenue service has made a fairly major effort to be more taxpayer friendly. The Industry Tax Issue Resolution Program is one such step.Industry Issue Resolution...
  • How To Contact The IRS Without Breaking Into A Sweat
    We all love to criticize the IRS, don't we? It's easy to ridicule a huge organization of government bureaucrats who often seem to be Public Enemy #1.Our negative attitude toward the IRS can lead to a strong...
  • 10 Thoughts on Tax Offer in Compromise
    Beware of advertisements that claim to settle tax debts for"pennies on the dollar". Check the Offer In Compromiserequirements to see if it is right for you.1. If you are unable to pay a tax debt in full,...
  • Tax Season - Time for Scams
    As tax season draws irresistibly closer, the scam artists are polishing their latest techniques. This article should help you keep an eye out for these nasty individuals.Tax Season - Time for ScamsIn a...
  • Alternative Minimum Tax - Online Tool
    Hell hath no fury like a person who just found out the alternative minimum tax applies to them. The IRS has set up an online tool to figure out if you do. Alternative Minimum TaxThe alternative minimum...
  • IRS Reports Tax Gap of $300 Billion
    The Internal Revenue Service is reporting that the difference between what U.S. taxpayers owe and actually pay on time totals more than $300 billion a year. Studying over 46,000 tax returns for individuals...
  • How Likely Are You To Be Audited?
    Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing individuals in 2003 when compared to 2002. The increase was approximately 14%, but still constituted only 6.5 audits for...
  • Compromising With The IRS
    Few things threaten your well-being like the harassment and anxiety of persistent tax problems. Most people make 3 mistakes that get them in trouble with the IRS. They procrastinate. They attempt to represent...
  • What To Do If You're Being Audited
    Audits are regularly issued by the Internal Revenue Service (IRS). There are two main reasons why an individual or business may be audited by the Internal Revenue Service (IRS). Random audits are not as...
  • Audit Advice That You Need
    Oh no! You need audit advice. You just received in the mail a notification that you are going to be audited by the IRS. What now? How do you respond to this and should you be having a heart attack now?...
  • 7 Steps to Successful Telecom Audit Preparation
    Your telecom audit will be much easier to understand (and complete!) when information is organized. By organizing information properly, you will define and focus your audit so the task seems much less...
  • The Legalities And Issues With An IRS Levy
    An IRS levy is an order from the Internal Revenue Security directing TVA to withhold a specified amount of an employee's pay to satisfy a tax debt. If the IRS determines that we owe back tax then it may...

Privacy Policy .... About Us  ....  Disclaimer .....   Copywrited 2005  - 2006 & Developed by  Tax Net Inc