What You Should Know about Filing for an IRS Payment Agreement
Perhaps you owe the IRS some money and you find it hard to pay your federal taxes. You are not alone in this concern. The thing is if you can't pay your tax debt in the regular designated timeframe, you can pay it through the IRS installment agreement. There are several options for you. The type of IRS installment agreement depends on the amount of taxes you have to pay and how quickly you will be able to pay it. The following are the payment plan options provided by the IRS:
Individual Installment Agreement
This is applicable to individual who owe the IRS $50,000 or less in income tax, penalties, and interests (combine). This allows you to make regular payment every month. Payment can be done through money order, direct debit, payroll deduction, credit card, online payment deduction, or electronic federal tax payment system.
Small Business Installment Agreement
For those businesses that owe $20,000 or less may be able to request an in-business trust fund express installment agreement. This type of payment plan often does not require a financial statement even if the company has employees. This offers a 24-month period to pay completely the outstanding debt. If the debt amount is more than $10,000 yet less than $25,000, the business has to set up the direct debit installment agreement. Be sure to discover more about tax relief.
Installment Agreement for Those Individuals Who Owe the IRS More than $50,000
People who are under this category has to submit the Form 9465 and Form 433-F. The latter is used for obtaining your present financial information for you to be able to pay the overdue tax balance. On the Form 433-F, you will be asked to list all the accounts and lines of credit as well as real estate properties and other assets that you have. It is necessary for you to provide your employment information and your monthly income and also your monthly expenses. Please read more abouttax relief here.
You also have to be aware of the installment agreement fees. You have to spend $120 to set up the standard payment agreement or the payroll deduction agreement. For a direct debit agreement, you have to pay $52. When your income is below a particular level, you have to pay $42 to set up an installment agreement. You need to submit another form, Form 13844, to request for this reduced fee. The fee for restructuring and reinstating an existing installment agreement, the fee is $50. Please visit this website to have more ideas about tax http://edition.cnn.com/2002/TECH/internet/03/12/tax.sites.idg/.