IRS Penalties

Do you need an IRS payment plan? Are you concerned about the amount of money you owe the IRS? If it turns out that you owe the Internal Revenue Service more in taxes that you think you can afford to pay, there are some viable options for you. The most important thing for you to consider is that you do it in the right (and legal) way. There are methods and policies in place to help you with your IRS payments and taxes owed but choosing not to take advantage of them can hurt you. If you decide simply to not pay your taxes or not pay them in full without any further explanation to the IRS, you can end up owing much more than you did in the first place. In some cases, this can even be a criminal offense and you could end up in jail.

This is not to say the IRS is not understanding of people and the taxes which they owe. This is why they have the IRS payment plan which allows you to pay the amount of taxes that you owe in installments over the course of several months until you have paid it in full. First, you need to find out exactly how much you owe. When you have verified this amount with the IRS, you then need to know how much you can afford to pay. If you can pay as much as possible up front, it will lower the amount that you need to finance into an IRS payment plan.

Next you should fill out Form 9465, Installment Agreement Request, or sign up for it online from the official IRS website. Then you will need to pick your monthly payment amount. Make sure it is an amount you can afford because you will have to pay this amount every month. You can always choose to pay more than the payment amount but you must at least pay the minimum.

You can also choose on what day of the month you want your payments to be due. You can choose any date that you want but remember that it will always be due on or before this date each and every month. Once you have filled out all of this payment plan information, you will submit it to the IRS and you will receive a response from them within 30 days. If they agree to your IRS payment plan, it will be set up and you will need to ensure you make those payments every month when they are due.

IRS Penalties |