When you owe tax, what IRS payment options do you have?
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You can pay by sending a check. Print a Form 1040-V for the correct tax year from the IRS web site www.irs.gov. Mail your IRS payment and the form to the address shown on page 2 of the form.
You can pay electronically without a fee using the federal EFTPS.
Telephone (800) 555-4477, or online at eftps.gov.
You can pay using a credit card, which will charge a transaction fee.
Link2Gov, 888-PAY-1040, www.pay1040.com
RBS WorldPay, Inc, 888-9PAY-TAX, www.payUSAtax.com
Official Payments Corp, 888-UPAY-TAX, www.officialpayments.com/fed
If you owe less than $25,000, and you can pay the entire amount within 3 years, and you have filed all of your tax returns, you can set up an IRS payment plan online. The California payment plan is similar.
You need to consult an experienced CPA if:
- Your taxes due are more than $25,000 federal or $10,000 state.
- You owe more than you can pay within 3 years
- You have circumstances which you think the IRS should take into account when calculating the amount of tax, interest, and penalties you owe.
Bess Kane, CPA
May, 2012
