SHOULD I SET UP A PAYMENT PLAN?
Don't do it unless it's your last resort due to the high fees, interest and penalties.
Bank loan, 401k loan, family loan, credit card, promotional low interest credit card cash advances that you can repay before the promotion ends.
HOW TO APPLY FOR IRS PAYMENT PLAN... 2 ways
1) BY MAIL...complete IRS form 9465 and mail... https://www.irs.gov/pub/irs-pdf/f9465.pdf
2) ONLINE APPLICATION if you owe $50k or less... https://www.irs.gov/Individuals/Online-Payment-Agreement-Application
THINGS TO KNOW
1) What to do first...
File your tax return on time with any partial amount you can afford. Now you are ready to apply for an IRS payment plan.
2) The IRS set up fee is $120... but reduced to $52 if you make your payments by direct debit.
3) Already are on an IRS payment plan? Don't bother completing the IRS application. Instead call 800-829-1040.
4) Can you pay in full within 120 days? Call 800--829-1040 to arrange repayment and avoid the $120 set up fee. Skip the application.
5) Terms... monthly payments and usually up to 72 months.
6) Approval... Your approval is guaranteed if you owe less than $10k, agree to repay within 3 years and have been tax compliant during the past 5 years. Otherwise, the IRS must approve your request and may take 30 days or longer.
MORE INFO from IRS web site:
Do You Qualify for Online application?You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns. You may also qualify for a short term agreement if your balance is under $100,000.
What Do You Need to Apply Online?
- Valid e-mail address
- Address from most recently processed tax return
- Date of birth
- Filing status
- Your Social Security Number (or spouse's if filed jointly) or Individual Tax ID Number (ITIN)
- If your filing status is married filing joint, the Online Payment Agreement application will accept only the Social Security Number that appears first on your tax return. If your SSN appears second, you must call the number on your bill or notice, or follow the instructions on our installments information page.
SHARE WITH A FRIEND.
If you need tax help... www.baboiancpa.com