|
Lack the total cash to pay Uncle Sam? The IRS has some options for you.
One option is an installment plan. If your tax payment is too large to pay in cash or throw on your credit card, the IRS is willing to take monthly payments. It even lets you pick your amount and the day it's due.
Your installment plan, however, must pay off the due tax in at least three years. Also, taxpayers who request a partial-payment installment agreement must provide detailed financial information, including data on equity assets that the IRS will verify.
After two years, the IRS will review the installment arrangement to determine whether the taxpayer's financial status has changed. If it has improved, the installment payments could increase or the agreement could be terminated.
To set up an installment payment, the IRS charges a one-time fee of $105, unless you make arrangements for direct debit from your bank account, in which caase the fee then drops to half that amount. To apply for this plan, the IRS now accepts online applications at www.IRS.gov.
For more detailed information on IRS payment options, visit Bankrate.com's Tax Guide.
|
