When you submit your tax return and find out that you owe the IRS money, it is never a good day. This is especially true for those that don’t have the funds to pay the IRS the money that they owe. However, have no fear, you can set up IRS payment plans that help you pay back the money that you owe in installments rather than in one lump sum. Mark Dicus & Company is here to explain some of the details that are involved in an IRS payment plan.
What Information is Needed to Apply for an IRS Payment Plan?
If you don’t know how you are going to pay the IRS the money that you owe, you can visit their website and apply for a payment plan to help you out. To get the application ball rolling you are going to need to offer some of your information including your full name, email address, address as it is shown on your tax return, birthdate, filing status and social security #. You will probably also need to include the balance that you owe as well.
How Do I Make a Payment to the IRS?
Once you have applied and been approved for your payment plan, there are several ways that you can make payments to the IRS. That is, unless you owe over $25,000. In that case, you will only be allowed to pay using your debit card. For others, you can use checks, money orders or debit cards to make payments.
There is a Fee for an IRS Payment Plan
While it may all be well and good that you can pay the IRS back using installments, you need to know that you will be charged interest and fees. The IRS has to make this worth their while, after all. Short term plans that are under 180 days will have no fees attached to them, but anything outside of that will be paying for it.
You Can Always Check Your Balance with the IRS
When you apply for the payment plan with the IRS, you will be setting up an account with them. This will come with a login and password. If you are every wondering what your balance looks like with the IRS, you can simply visit the site and sign in to your account to find out that information. You need to keep in mind that when you make a payment, the IRS is extremely slow in processing it. It can take up to three weeks for a payment to appear on your account. So if you check and it is higher than you think it should be, give it a little more time and check back.
Tax Preparation, Filing & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have questions about how to pay the IRS money that you owe them, or need help preparing and filing your taxes, you can turn to Mark Dicus & Company to give you the answers you need. Call us today!