How to Pay Back Taxes in Installments

Video Transcript

"On this segment we'll talk about paying your taxes in installments. If you find you owe taxes for the year, or for previous years and you can't pay them all in full, you must request from the IRS, payment plan. You do that request on form nine-four-six-five. The IRS will ask very simple questions. One of them is about your bank account, they will want to take the payments directly out of that bank account. It's not always how much you can afford to pay, but it's with in the time frame the IRS would like. When I fill out a form for a client, I try to figure the payments over twenty-four months, and then we make that request from the Internal Revenue Service. They do not have to answer that, they do not have to accept what you offer. They may say no, the payments must be higher, I never heard them say they can be lower. Your other alternative is to do an offer in compromise. That's a very expensive process to hire someone to do for you, and it's quite complicated to do it yourself. An offer in compromise, a few years ago, they were very frequently accepted. In the last current years, they have not accepted very many of them. The best thing to do is to do your best, fill out what you can, pay what you can, and request a payment plan. Thank you very much."