Try electronic payment options if you owe taxes

If you find that you owe taxes when you’re filing your return, you’ll need to pay what you owe by April 18, 2017, to avoid interest and penalties. For a safe and easy way to pay, use an IRS electronic payment option and pay online, by phone or with your mobile device using the IRS2Go app.

Electronic Funds Withdrawal allows you to e-file and pay when you’re using tax preparation software or a tax professional. With EFW, you can set up a direct debit payment from your bank account for the taxes you owe and up to four estimated payments.

Another option is IRS Direct Pay; it’s free and lets you pay from your checking or savings account. With Direct Pay, you can change or cancel your payment using the Look Up a Payment feature up to two business days before the payment date. To access Direct Pay go to IRS.gov/payments or use the IRS2Go app.

If you prefer to pay by debit or credit card, you can pay online, by phone or with IRS2Go through authorized debit and credit card processors. Though the IRS does not charge a fee for this service, there is a fee from the card processors. Visit IRS.gov/payments for authorized card processors and their phone numbers.

If you need to pay with cash, PayNearMe may be the answer for you. You can make a payment without the need of a bank account or credit card at more than 7,000 7-Eleven stores nationwide. To pay with cash, first visit IRS.gov/paywithcash and follow the instructions.

Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

About Your IRS Notice or Letter

The IRS normally sends correspondence in the mail. They mail millions of letters to taxpayers every year. Keep these important points in mind if you get a letter or notice:

• Don’t Ignore It.  You can respond to most IRS notices quickly and easily. 
• Follow Instructions.  Read the notice carefully. It will tell you if you need to take any action. Be sure to follow the instructions. The letter will also have contact information if you have questions.
• Focus on the Issue.  IRS notices usually deal with a specific issue about your tax return or tax account. Your notice or letter will explain the reason for the contact and give you instructions on how to handle the issue. 
• Correction Notice. If the IRS corrected your tax return, you should review the information provided and compare it to your tax return.

If you agree, you don’t need to reply unless a payment is due.

If you don’t agree, it’s important that you respond. Follow the instructions on the notice for the best way to respond to them. You may be able to call them to resolve the issue. Have a copy of your tax return and the notice with you when you call. If you choose to write to them, be sure to include information and any documents you want them to consider. Also, write your taxpayer identification number (Social Security number, employer identification number or individual taxpayer identification number) on each page of the letter you send. Mail your reply to the address shown on the notice. Allow at least 30 days for a response.

• Respond to Requests about the Premium Tax Credit.  The IRS may send you a letter asking you to clarify or verify your premium tax credit information. You should follow the instructions on the letter. For more information about these letters, see the Understanding Your Letter 0012C page on IRS.gov/aca.
• You Don’t Need to Visit the IRS.  You can handle most notices without visiting the IRS. If you have questions, call the phone number in the upper right corner of the notice. Have a copy of your tax return and the notice when you call.
• Keep the Notice.  Keep a copy of the IRS notice with your tax records.
• Watch Out for Scams.  Don’t fall for phone and phishing email scams that use the IRS as a lure. The IRS will contact you about unpaid taxes by mail first – not by phone.  Be aware that the IRS does not initiate contact with taxpayers by email, text or social media.

Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

Do You Owe Taxes?

The IRS offers many safe and easy ways to pay your taxes. These tips explain many of them:

• Mailed tax bills. The IRS sends bills in the U. S. mail. Try to pay soon and in full to avoid any extra charges. If you can’t pay in full, you’ll save if you pay as much as you can. The more you can pay the less interest and penalties you will owe for late payment. The IRS offers several payment options on IRS.gov. 

• Use IRS Direct Pay. The best way to pay your taxes is with IRS Direct Pay. It’s the safe, easy and free way to pay from your checking or savings account. You can pay your tax in just five simple steps in one online session. Just click on the “Payment” tab on IRS.gov. You can now use Direct Pay with the IRS2Go mobile app.
• Get a short-term payment plan. If you owe more tax than you can pay, you may qualify for more time- up to 120 days- to pay in full. You do not have to pay a user fee to set up a short-term full payment agreement. However, the IRS will charge interest and penalties until you pay in full. It’s easy to apply online at IRS.gov.
• Apply for an installment agreement. Most people who need more time to pay can apply for an Online Payment Agreement on IRS.gov. A direct debit payment plan is the hassle-free way to pay. The setup fee is much less than other plans and you won’t miss a payment. If you can’t apply online, or prefer to do so in writing, use Form 9465, Installment Agreement Request. Individuals can use Direct Pay to make their installment payments. For more about payment plan options, visit IRS.gov.
• Check out an offer in compromise. An offer in compromise or OIC may let you settle your tax debt for less than the full amount you owe. An OIC may also be helpful if full payment may cause you financial hardship. Not everyone qualifies, however, so make sure you explore all other ways to pay your tax before you submit one to the IRS. Use the OIC Pre-Qualifier tool to see if you qualify.
• Avoid tax surprises. If you are an employee, you can avoid a tax bill by having more taxes withheld from your pay. To do this, file a new Form W-4, Employee’s Withholding Allowance Certificate, with your employer. Use the IRS Withholding Calculator tool on IRS.gov to see if you’re having the right amount withheld. If you are self-employed, you may need to make or change your estimated tax payments. See Form 1040-ES, Estimated Tax for Individuals to learn more.

Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

Installments - What you need to know

If you are unable to pay the full amount of tax owed, you may request a monthly installment plan.

Before applying for any payment agreement, a taxpayer must file all required tax returns.

Installment agreements generally provide up to 72 months to pay the tax. In certain circumstances, the payment period could be longer or the amount agreed to could be less than the amount of tax owed.

An installment plan is not valid unless accepted by the IRS. However, if a taxpayer owes $10,000 or less and meets certain other criteria*, the IRS must accept the request.

To request an installment agreement a taxpayer can attach Form 9465 - Installment Agreement Request to the front of his tax return, or in cases where the return is already filed-mail it directly to the IRS.

If the balance due is not more than $50,000, the taxpayer can apply online for a payment agreement instead of filing Form 9465.

If the IRS approves a request, they send a notice detailing the terms of the agreement and request a fee.

If a taxpayer is able to pay the full amount owed within 120 days, he should not request an installment agreement on Form 9465.

If the total amount the taxpayer owes is greater than $25,000 but not more than $50,000, the taxpayer may use a slightly expanded Form 9465-FS - Installment Agreement Request.

contact@officetaxservices.com

(858)247-1680