What Do You Do

What do You do if You Don’t have Enough Money To pay your Taxes?

Maybe you should apply for a Payment Plan.

What is a payment plan?
A payment plan is an agreement with the IRS to pay the taxes you owe within an extended time frame. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended time frame.

What are payment plan costs and fees?
If the IRS approves your payment plan (installment agreement), one of the following fees will be added to your tax bill. For individuals, balances over $25,000 must be paid by Direct Debit. For businesses, balances over $10,000 must be paid by Direct Debit.

Apply online through the Online Payment Agreement tool or apply by phone or by mail by submitting Form 9465, Installment Agreement Request.

Pay amount owed in monthly payments

Cross your t’s and dot your i’s and make sure you hire an experienced Qualified Intermediary and Tax Professional.

Payment Options	Costs
Option 1 - Pay through Direct Debit (automatic monthly payments from your checking account), also known as a Direct Debit Installment Agreement (DDIA).	Apply online - $31 setup fee Apply by phone, mail, or in-person - $107 setup fee Low income - Apply online, by phone, or in-person - setup fee waived Plus accrued penalties and interest until the balance is paid in full
Option 2 - After applying for a long-term payment plan, payment options include-	Make monthly payment directly from a checking or savings account (Direct Pay) (Individuals only) Make monthly payment electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required) Make monthly payment by check, money order or debit/credit card Fees apply when paying by card Apply online - $130 setup fee Apply by phone, mail, or in-person - $225 setup fee Low income- Apply online, by phone, or in-person - $43 setup fee which may be reimbursed if certain conditions are met Plus accrued penalties and interest until the balance is paid in full

Payment Options

Costs

Option 1 - Pay through Direct Debit (automatic monthly payments from your checking account), also known as a Direct Debit Installment Agreement (DDIA).

Apply online - $31 setup fee
Apply by phone, mail, or in-person - $107 setup fee
Low income - Apply online, by phone, or in-person - setup fee waived
Plus accrued penalties and interest until the balance is paid in full

Option 2 - After applying for a long-term payment plan, payment options include-

Make monthly payment directly from a checking or savings account (Direct Pay) (Individuals only)
Make monthly payment electronically online or by phone using Electronic Federal Tax Payment System (EFTPS) (enrollment required)
Make monthly payment by check, money order or debit/credit card
Fees apply when paying by card
Apply online - $130 setup fee
Apply by phone, mail, or in-person - $225 setup fee
Low income- Apply online, by phone, or in-person - $43 setup fee which may be reimbursed if certain conditions are met
Plus accrued penalties and interest until the balance is paid in full

Call us if you need to consult with a Tax Pro regarding a Section 1031 Exchange.

727.310.8106

Posted in Tax