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IRS Payment Plan
Create an IRS payment plan for your taxes
One of the most important issues of every tax collecting agencies has been to make sure that everyone pays their due taxes in time. This endeavor has leaded these agencies to put into effect many a measures. These measures have been brutal in the past where the monarchies and despotic governments had levied heavy taxes and not paying which lead to severe punishment. But for a long time now many great democracies have come into effect throughout this planet and this has led to various more persuasive rather than threatening measures for tax collection. Such measures have been the back bone of these nations where paying taxes is not so much regarded with fear but rather a sense of duty ( yes taxation does get some grunts from us but those are not from the fear of our life at-least). Similarly the IRS also adopted many friendly measures to help those who could not pay the taxes in time. These measures have been put in place keeping with one of the primary goals of the IRS, which is voluntary tax filing. To achieve this IRS decided that helping those people who are genuinely having a fund shortage and are unable to pay their taxes must be helped to pay off their due taxes. Since this had to be done keeping within the law the IRS has devised a new IRS payment plan that allows the taxpayers who are unable to pay the taxes in due time can do so slowly in installments.
There are two ways to pay your taxes firstly you can do so using the electronic federal tax payment scheme. Secondly you can use pay it the usual way by using sending Cheques and money orders in the name of the “United States Treasury”. But its is important to know that while using these IRS payment plans it is necessary to provide your social security number and other necessary details.
Another important piece of advice to remember here is that you can opt to take loans from banks to pay your taxes in due time, since together with the interests and the penalties that IRS levies on unpaid tax the total generally amount to more than the amount you will have to pay the bank. Also the IRS does offer 10 to 120 days of time to pay your tax in full after the last date of submission after accessing whether your inability to pay the tax is genuine or not.
Finally for those who are not willing to or cannot pay the unpaid tax quickly there is a solution. This IRS payment plan is called the “installment agreement”. This agreement can be requested for and is given to only those whose case is thought to be genuine by the IRS. One of the most important thing to remember here is that IRS only gives this benefit to those who have filed their tax correctly before the due time as this reflects the fact that the taxpayers has made sincere efforts to pay the tax and is still unable to pay for some reason following which the IRS helps that tax payer pay off his/her/its taxes. This IRS payment plan has several features. These are:
- To pay off your unpaid taxes you can contact the IRS to request for an installment plan and while doing so you can request for a copy of your return to get a precise idea of how much tax you owe.
- After doing this you can fill out the form number 9465. This form consists of all the details that you need to request the IRS installment plan.
- Then you have to choose the amount of money per installment and the payment date. This is the date by which time you have to pay your monthly installment to the IRS. This date can be chosen from between 1st to 28th and you must pay your taxes by this time of the month or else pay penalties.
- After doing this you can submit this form to the IRS. Thereby the IRS will send you a reply which will either accept your plan or ask you to change it or provide more detail or refuse to accept it. This reply is sent usually within 30 days of the receipt of your request.
- Then you can start paying your installments by either using the EFTPS or paying using money orders and such within the stipulated time of each month. Or you can have it automatically deducted from an account or have it cut from your pay as well.
So always try and pay your due taxes, if not able to pay the taxes inform the IRS about your situation in response to their notices and set up an installment plan etc. Failure to respond as well pay the dues entitles the IRS to take strict action against such tax payers.