How Do I Pay My IRS Notice?
If you’ve received a notice from the IRS and aren’t sure what to do next, the experienced attorneys at Wiggam &Geer can help you evaluate your options, craft a proper response, and determine the best payment alternative.
The IRS sends taxpayer notices for a number of reasons. You may owe back taxes, the agency may have changed items on your return, or the IRS could be requesting more information. Don’t ignore the letter. It’s important to read the notice, and take action within the appropriate time period in order to avoid further notices and ultimately liens and other enforcement actions.
How Much Do I Owe the IRS?
If the IRS is asking for federal income tax payment, the balance will likely include accrued penalties and interest. Sometimes it can be confusing as to how much you owe. You may have received more than one notice and have balances due for multiple years.
To determine your total tax liability, you can create an online account with the IRS and view:
- The total amount you owe, including details by year
- Payment history
- Digital copies of your IRS notices, although the agencies does not guarantee that all notices are currently available online
- Key data from your last return
- Payment plan options
Through your IRS account, you can also pay federal income tax online. As of now, the system does not allow taxpayers to make estimated tax payments through the portal.
When to Pay Taxes?
Once you have determined how much you owe in federal taxes, you need to determine how much you can pay and over what period of time. Since outstanding tax debt continuously accrues penalties and interest, it’s best to pay as much as you can as soon as you can. If your notice asks for payment within a certain period of time, consider responding to the notice with payment or contacting the IRS about other options before the deadline.
How Do I Pay My Taxes?
The IRS offers a variety of ways to pay your taxes beyond the traditional check sent in the mail or online payment through its portal. The agency contracts with third-party payment processors that, for a fee, will process your tax payment using a debit or credit card.
What if I Can’t Pay My Taxes?
If you cannot pay your total outstanding balance at once, there are several options for making payments to the IRS. These include:
- Short-term payment plans – if you can pay your outstanding taxes as well as your interest and penalties in 180 days, this might be the best option for you. (Note, 180 days is a pandemic-relief period; normally the payment period for a short-term plan is 120 days.)
- Installment agreements – also known as a long-term payment plan, this agreement allows you to take up to 72 months for paying back taxes plus the related penalties and interest.
- Offer in compromise – under this plan, the IRS agrees to lower your overall tax liability and let you pay off the reduced debt in installments. Not every taxpayer who requests an OIC is granted one. The IRS looks at your income, expenses, and assets to determine how much you can pay and whether to reduce your overall liability.
If you have received a notice from the IRS, it’s best to act quickly and hire an experienced tax attorney as soon as possible. Our team of experienced tax attorneys can help you evaluate all your options and represent you. Give us a call today at (404) 233-9800 to get started.
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