People who owe the Internal Revenue Service money for federal taxes can set up an installment plan to make payments over time to pay the tax bill. An installment plan will cost you more money because the IRS will charge you interest and penalties on the taxes that are not paid in full before the due date.
Things You'll Need
- Tax bill
- Competed tax return
- Bank account numbers
Set up an installment agreement with the Internal Revenue Service by completing the online payment agreement. This can be found at irs.gov.
Be prepared to enter personal information from your tax bill or completed tax return to complete the online payment agreement application.
Have your financial information, such as checking or savings account numbers, available for setting up an automatic withdrawal to make your installment tax payments.
Write down any information such as phone numbers or addresses that the system gives so you can contact the proper department, if needed, later.
Follow through with your agreement with the Internal Revenue Service until the taxes you owe are paid in full.
Tips & Warnings
- Even if you can't pay your entire tax bill at one time, pay as much as possible to lower the interest and penalties you will be charged for the outstanding balance.
- Contact the Internal Revenue Service as soon as you realize you are not able to pay your tax bill in full.
- Sometimes the IRS will request additional information to complete your request for an installment plan.
- Photo Credit tax forms image by Chad McDermott from Fotolia.com wristwatch and dollar bills image by Squareplum from Fotolia.com
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