There are a few different ways to pay the IRS.
The IRS Direct Pay allows you to have your tax bill deducted directly out of your checking or savings account. There is no charge for this option.
The IRS also accepts debit cards and credit cards. However, you must use one of the six different payment processors that the IRS accepts. Also, there is a fee of approximately $2.75 for debit cards and 1.9% for credit cards. Most credit cards are accepted by at least one of the payment processors.
The IRS Electronic Federal Tax Payment System allows taxpayers to pay their tax bill online or over the telephone. There is no charge for this option. However, this option is usually used by employers needing to make their quarterly tax deposits or their payroll tax deposits.
Of course, the IRS accepts checks. If you choose this payment method, be sure to make your check payable to the Department of Treasury. This same rule applies for money orders.
An installment agreement is where a taxpayer cannot pay the full amount of the tax bill and therefore needs a monthly payment plan. You can usually get a 5 year payment plan on your tax bill, but there is a fee of $120.
An offer in compromise is where a taxpayer cannot pay the full tax bill up front or in monthly payments. This option allows taxpayers to make an offer to the IRS in hopes that the IRS will accept less than the balance owed. This option costs $186 and a full disclosure of all of your assets and liabilities.
If you are having tax troubles contact our office by phone at 816-524-4949 or visit our website at Hoorfarlaw.com.