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Tax Trouble - Payment Plans
This section discusses the basic 3 types of payments deals you might be able to arrange for with the IRS.
$10,000 or less. You will be interested in the GIA or
Guaranteed Installment Agreement.
If you can't pay your full tax bill within 120 days and the IRS agrees that it is so, request an installment agreement and they won't reject your application as long as what you owe altogether is less than $10,000.
You and the spouse have to have filed properly and paid taxes for the last 5 years.
You have to agree to pay the bill in total within 3 years with no further tax problems during that time..
This section talks about whether you owe $25,000 or less or more than $25,000.
If you owe the IRS $25,000 or less in combined tax, penalties, and interest,the next move is to use the Online Payment Agreement (OPA) or get on the phone and call the number on the bill or the notice. |
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Be sure to have all pertinent information at hand such as the bill or notice and your social security number, tax return, caller ID from the top of your recent notice, PIN number if you have it.
Think it out and know the highest you can afford to pay and when you can actually pay.
Use the "Request for Installment Agreement", Form 9465.
Mail it to the address on the bill.
Scroll down for more info:
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If you know that you owe the IRS and have just recently filed but haven't received a notice or bill then you can use the Online Payment Agreement (OPA) to establish an installment agreement on current year returns.
If you don't have a PIN or caller ID you will need to call the IRS.
At the time that you apply for a monthly payment plan, have info about your income and expenses such as your pay stubs, utilities, rent, mortgage statements, etc.
This will determine what you can handle for your monthly installment payment.
You will also determine what day of the month your payment will be due.
OPA might have a payment calculator to help with determining the monthly payment amount.
In setting up a payment plan before you get a bill from the IRS, you also need to have more info at hand.
The easy part is that most likely you know your date of birth, be ready they are going to ask for it.
Find the balance due shown on the return and, your spouse’s taxpayer identification number (if applicable).
From last year's taxes you need
the adjusted Gross Income and the Total Tax.
You Owe Over $25,000
This is a bit more involved a procedure but again if you need help there are companies that specialize in this kind of tax burden help.
You tax burden is now in excess of $25,000 in combined tax, penalties, and interest and yet you might still qualify for an installment agreement.
You may have to fill out a Collection Information Statement, Form 433F.
There is a phone number on the bill that you can call to ask about it or fill out and mail the
Request for Installment Agreement, Form 9465 and Form 433F.
Find the address on the bill and mail it there.
If you feel that you don't want to make a mistake seek professional Tax Help.
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For more detailed tax information go to www.irs.gov
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