What to do if you cannot pay taxes in full: IRS instruction

US Internal Revenue Service (IRS) reminds taxpayers of a few simple ways to pay taxes: it will be useful for everyone, especially for those who, for various reasons, cannot immediately pay the full amount required.

Photo: depositphotos.com

According to the IRS, large tax law changes for tax returns for the year 2018 will affect the majority of taxpayers in the country. Most of them will receive a tax refund, but some may find that they still have to pay a certain amount to the tax authority. However, many may qualify for liberation from penalties for non-payment, which are usually applied in such cases. You can learn more by studying Form 2210 "Underpayment of the estimated tax by individuals, property and trusts" and instructions to it.

“The IRS understands that there were many changes last year that affected people. The new penalty waiver will help taxpayers who accidentally had too little withheld, said IRS Commissioner Chuck Rettig. “We encourage everyone to double-check your tax withholdings this year to make sure your amount is correct.”

The IRS urges you to file by the April 15 deadline, even if you can't pay your taxes in full. In this situation, you need to pay what you can and consider a plan to pay the balance in stages.

You can choose one of these payment methods:

IRS Direct Pay: Payment directly from current or savings account. The service is free.

Electronic Federal Tax Payment System or EFTPS: payment by phone or online. The service is free.

Payment by debit or credit card: the service is free, but the processing company may charge a fee, and fees vary by company.

Check or money transferPayable to the US Treasury, either brought in person or mailed.

Cash payment in some IRS offices or at PayNearMe: there are some restrictions, and taxpayers should not send cash in the mail.

If you are unable to pay taxes in full, you should act quickly. In this case, several options are available, including:

Online installment agreements. Persons who owe 50 thousands of dollars or less in the form of a combined income tax, fines and penalties, as well as businesses that owe 25 thousands of dollars or less in the form of a payroll tax and have already filed all tax returns, can qualify for an online agreement about installment payment. Most taxpayers are eligible for this option, and the agreement is usually concluded in a couple of minutes. Online tax payment plans are available from Monday to Friday from 6: 00 to 12: 30; on Saturday from 6 to 10 hours; Sunday from 18: 00 until midnight EST.

Agreement for payment by installments. An installment plan paid from a bank account or deducted from payroll helps to avoid default, reduces the burden of postage and saves postage. Even taxpayers who do not have the right to an online payment agreement can pay in installments. There are certain fees for the service.

Payment delay. If the IRS determines that the taxpayer cannot pay the tax in full, the service may defer payment until the financial situation improves.

Compromise offer. Some taxpayers have the right to pay a smaller amount than they should, as part of a compromise offer. To find out if your case is suitable or not, use the auxiliary online tool.

Taxpayers may consider other payment options, including lending to pay the amount due. In many cases, the cost of a loan may be lower than the combination of interest and penalties that the IRS must charge in accordance with federal law.

Check the amount of tax withholding

IRS urges all taxpayers check tax amount for 2018 year. This is especially important if you have corrected retention earlier or there have been major changes in your life. Those who have previously classified taxes, and now gives a standard itemized deduction, as well as households with two employees, self-employed people and people with a difficult tax situation, are most at risk of paying too little tax.

To assist taxpayers, the IRS provides an updated version of online tax deduction calculator. And it's never too late to check your amount. This is a good idea for any year, but it's especially important at the start of 2019 as most businesses adjust to revised tax rates, deductions and credits.

Online tools

IRS encourages taxpayers to use tools and resources, available at IRS.gov. Taxpayers have many opportunities to get help filing and preparing their tax returns on the official IRS website. Page "Let me help you» answers most tax questions, and 5136 publicationThe IRS Services Guide contains links to these and other services.

You can go to IRS.gov/account for secure access to your federal tax account information. You can also see online the amount you owe, deposit money or conclude an online payment agreement, access your tax records online, view payment history for the last 18 months and basic information about the tax return for the current year. Go to IRS.gov/secureaccess, to become familiar with the process of authentication of identity

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