What to Do When You Can’t Pay Your IRS Bill
The Internal Revenue Service (IRS) collects and reviews federal income tax paperwork from most working Americans. If residents pay more income tax than required by the IRS a refund is issued. If residents pay less than required by the IRS they are responsible for making payment to the IRS for all monies owed. Depending on the amount owed to the IRS, residents may have trouble making payments on-time.
How to Pay the Bill
The IRS website is huge with tons of information relating to filing federal income tax paperwork, deductions, credits and IRS bill pay. It is simple to get lost amongst the thousands of pages of information.
Pay online: You can pay your IRS bill online at https://www.eftps.com/eftps/login/loginInitial. Payments are processed through the EFTPS service. Tax payers must register for account access and wait five to seven days for a PIN via mail. Once the PIN arrives, taxpayers can log in using their social security number, PIN and Internet password.
Pay by mail: Mail payments are accepted by the IRS. Taxpayers should make the personal check or money order out to the US Treasury. The address to mail your payment is dependent on your location. It is best to contact the IRS for the proper mailing address or copy the address from your tax notice, according to IRS documents.
Pay at a local office: Cash payments are accepted at local IRS offices. You can search for the nearest office location via the interactive map on the IRS website.
Questions About Your Billing Statement and Account?
The IRS offers a detailed FAQs page describing penalty fees, late payment fees and interest charges. Not all topics are covered, so customer service is available at 1-800-829-4477 for additionanl information.
How the Penalty Fees Work
IRS Topic 653 covers penalties and interest charges assessed on past due and overdue payments. Penalties and fees for filing late are also covered in this document.
- Interest on unpaid balances: Federal short-term rate plus 3%.
- Late payment penalty (return filed on-time but amount owed not paid by due date): 0.50% of the amount owed computed monthly.
- Late payment penalty (return not filed on-time): 5% of the amount owed computed monthly for five months.
Other penalty charges may apply based on your individual case.
I Can’t Make a Payment
The IRS offers payment arrangements for taxpayers who cannot make payment in one lump sum. The payment arrangement typically breaks the total amount due into 12 equal payments. The IRS likes to associate payment plans with automatic bank withdrawal to ensure on-time payments are made each month.
Will They Work With Me to Pay My Bill?
The IRS will work with you to pay off a past due tax bill, but you must contact the IRS to place your tax bill on a payment plan. If you cannot make payment plan payments, how did you work with the IRS to resolve your tax burden?