Ideal Way to Pay Your Tax to the IRS

Nobody truly wishes to enter into a scenario where they owe back taxes to the IRS, however it is certainly a thing that can happen to certain people if they are NOT cautious.

Regardless if you are having difficulty with your credit cards or home loan payments, you still need to ensure that you can pay the IRS. The Government is always making sure that they end up with their funds, and that means you have to be sure that you pay them immediately. Take care of your debts in full if you can, but you must keep in mind that they will always make sure that they get every last cent from you in time. In fact, they are the only debt collectors who are lawfully permitted to use pistols and ammo.

 

MANY OPTIONS

When you go to pay the IRS, you have a few different options at your disposal. They basically take any kind of payment because they just want to make sure that they are eventually going to get paid for what you owe them. You can pay with checks, money orders, credit cards, cashier’s checks or the Electronic Federal Tax Payment System. If you are trying to figure out what kind of payment you are going to send the IRS, you should just try to make sure that you use the payment that gets them their money in the fastest way possible.

PAY IN FULL, AS SOON AS POSSIBLE

The IRS has plenty of ways to encourage you to pay your taxes, and they will eventually start to garnish your wages if you have not paid in a few years. It is always a better idea to pay your debts in full as soon as possible because you never want to be in a situation where you cannot pay back the IRS. If you do not have the funds to pay the IRS in full, you should still file your tax return and contact the IRS to let them know your plan. If you do not let the IRS know how you plan to pay off your tax debt, you will probably face a few fines and penalties that will eventually start to add up over time. {See also Guide for First-Time Taxpayers}

PAY AS MUCH AS POSSIBLY YOU CAN

When you send in your tax return and you know that you will not be able to pay all of your debts in full, you still need to pay as much as you possibly can right away. There will be fees that can add up to an extra 25% of what you already owe, so you need to make sure that you do not put yourself in a situation where you cannot pay back the IRS over the long term. The sooner you decide to start paying off the IRS, the sooner you will be able to figure out how to get rid of all those extra penalties and fines.

SHORT-TERM PAYMENT PLAN

One option that you may want to take if you cannot make the payment in full right now is the short-term payment plan. This will give you 120 days to pay the IRS all of what you owe. There is no fee that is charge to your tax account with this plan, but it will accrue interest over time. This is usually your best option when you need a little bit of extra time to get your funds together for the IRS. {See also How to Save Money from the Sales Tax Holiday}

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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