While most people get a refund from the IRS when they file their taxes, some do not. If you owe federal taxes, the IRS has several ways for you to pay. Here are six tips for people who owe taxes:<\/p>\n
1.\u00a0Pay your tax bill.<\/strong>\u00a0 If you get a bill from the IRS, you\u2019ll save money by paying it as soon as you can. If you can\u2019t pay it in full, you should pay as much as you can. That will reduce the interest and penalties charged for late payment. You should think about using a credit card or getting a loan to pay the amount you owe.<\/p>\n 2.\u00a0Use IRS Direct Pay.\u00a0<\/strong> The best way to pay your taxes is with the IRS Direct Pay tool. It\u2019s the safe, easy and free way to pay from your checking or savings account. The tool walks you through five simple steps to pay your tax in one online session. Just click on the \u2018Pay Your Tax Bill<\/a>\u2019 icon on the IRS home page.<\/p>\n 3.\u00a0Get a short-term extension to pay.<\/strong>\u00a0 You may qualify for extra time to pay your taxes if you can pay in full in 120 days or less. You can apply online<\/a> at IRS.gov. If you received a bill from the IRS you can also call the phone number listed on it. If you don\u2019t have a bill, call 800-829-1040 for help. There is usually no set-up fee for a short-term extension.<\/p>\n 4.\u00a0Apply for a monthly payment plan.\u00a0<\/strong> If you owe $50,000 or less and need more time to pay, you can apply for an Online Payment Agreement<\/a> on IRS.gov. A direct debit payment plan is your best option. This plan is the lower-cost, hassle-free way to pay. The set-up fee is less than other plans. There are no reminders, no missed payments and no checks to write and mail. You can also use Form 9465<\/a>, Installment Agreement Request, to apply. For more about payment plan options<\/a> visit IRS.gov.<\/p>\n 5.\u00a0Consider an Offer in Compromise.<\/strong>\u00a0 An Offer in Compromise<\/a> lets you settle your tax debt for less than the full amount that you owe. An OIC may be an option if you can\u2019t pay your tax in full. It may also apply if full payment will cause a financial hardship. You can use the OIC Pre-Qualifier tool<\/a> to see if you qualify. It will also tell you what a reasonable offer might be.<\/p>\n 6.\u00a0Change your withholding or estimated tax.<\/strong>\u00a0 You may be able to avoid owing the IRS in the future by having more taxes withheld<\/a> from your pay. Do this by filing a new Form W-4<\/a>, Employee\u2019s Withholding Allowance Certificate, with your employer. The IRS Withholding Calculator<\/a> on IRS.gov can help you fill out a new W-4. If you have income that\u2019s not subject to withholding you may need to make estimated tax<\/a> payments. See Form 1040-ES<\/a>, Estimated Tax for Individuals for more on this topic.<\/p>\n To find out more see Publication 594<\/a>, The IRS Collection Process. You can get this booklet on IRS.gov. You may also call 800-TAX-FORM to get it by mail.<\/p>\n Additional IRS Resources:<\/strong><\/p>\n IRS YouTube Videos:<\/strong><\/p>\n IRS Podcasts:<\/strong><\/p>\n Note. From Issue Number: IRS Tax Tip 2014-18. \u00a0Copyright 2014 by Copyright Holder. Reprinted with permission.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Issue Number: \u00a0\u00a0 IRS Summertime Tax Tip 2014-18 \u00a0Inside This Issue While most people get a refund from the IRS when they file their taxes, some do not. If you owe federal taxes, the IRS has several ways for you … Continue reading \n
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