April 13th, 2016
TAX TIP OF THE DAY... need an IRS payment plan?
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?
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If you need tax help... www.baboiancpa.com
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David S. Baboian, CPA