Tag: Offer in compromise

IRS Options For Avoiding The President’s Day Rush

The President’s Day is a holiday that forms part of the busiest times for IRS telephone lines. The wait can however be avoided as the IRS is equipped with easy options for taxpayers to find the answers they need. They can save time by visiting IRS.gov. Below are some of the most frequently asked questions by taxpayers about taxes 2014 and how answers can be quickly found.

Taxpayers always like to know the status of their refund. Most refunds are issued by the IRS in not more than 21 days. Status of a refund can be checked on the IRS.gov site or via the newly updated IRS2Go Smartphone app. to get the refund status; a taxpayer would need certain information from his or her tax return. The information is updated every day, so checking more often than that is not necessary.

Internal Revenue Service
Internal Revenue Service (Photo credit: LendingMemo)

Some individuals may have missed getting a Form W-2. Employers are supposed to send this form, which is a Statement of Earnings, to their employees by 31st January. If someone has not gotten it by mid-February, he or she should first contact the employer to ensure they have the correct address in their records. Once all options with an employer have been exhausted, one can contact the IRS and they will send the employer a letter. It is however advisable to call when the President’s week has ended to avoid the long phone waiting times.

A taxpayer may wonder if he or she can get a copy of their tax transcript or return. Such a copy can easily be ordered on the website, on the Smartphone app or by mailing a Form 4506-T to IRS. Others may wonder what happens if they cannot pay their Turbo Tax 2014 bill. If someone owes taxes but cannot pay, the Online Payment Agreement Tool can be used. The tool can help someone figure out if they are qualified for installment agreement with IRS in a few minutes. For those with more serious tax obligations, there is an Offer in Compromise Pre-Qualifier. It helps determine if someone qualifies for an IRS agreement in which his or her tax liability will be settled for an amount that is less than owed.

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Filing A Tax Extension

Need More Time to Pay Taxes? Read On!

Taxpayers that owe money on their taxes will be glad to know that they have some options if they can’t afford to pay the full tax liability immediately.

Here are 10 things the IRS would like people to know about taking more time to pay their taxes:

1. If a taxpayer can’t pay the full amount, they should pay as much as they possibly can. Paying as much as they can now lowers the amount of penalties and interest that will be added to the amount owed.

2. Depending on the circumstances, taxpayers might qualify for an tax extension on the amount of time they have to pay by making an installment agreement, delay or Offer in Compromise.

3. If you’re unable to pay, you should write to the address or call the number that appears on your bill.

4. You could also think about financing the payment of your taxes by getting a loan. A bank or credit company will still charge interest and fees, but will generally be less than those charged by the IRS for late payment.

5. You could qualify for additional time to pay your taxes in full, up to 120 days. There is no fee for this arrangement, and taking this route could minimize the interest and penalties that get added on.

6. You could also pay with a payment plan, in which you can make manageable monthly payments for a one-time $105 fee. However, if you can arrange monthly debits from a bank account, the fee drops to $52. And low-income taxpayers can get a fee of just $43.

7. You can apply for the payment plan with the Online Payment Agreement form that can be found on the IRS website, or file a 9465 form or an payment plan request, or you can call the IRS at the number found on your IRS bill.

8. Taxpayers might also qualify for an Offer in Compromise, which is a settlement that the IRS makes with the taxpayer making the liabilities less that what was originally owed. The offer won’t be accepted if the IRS determines that the taxes could be paid in one sum or with some kind of a payment agreement.

9. If you do set up a payment agreement, the IRS could still file the tax lien, securing the interest of the government until your final payment is made.

10. You should always respond to an IRS notice. If you fail to pay your taxes or make a payment arrangement, the IRS could take collection actions.

For more information, visit the IRS website at irs.gov.

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