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.
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.
|Option 1 - Pay through Direct Debit (automatic monthly payments from your checking account), also known as a Direct Debit Installment Agreement (DDIA).
|Option 2 - After applying for a long-term payment plan, payment options include-