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What to do if you owe
Tax and don’t have the cash available?(From IRS WEB
Site)
File
your return immediately with as much money as you can, and for the balance:
1)
Pay by Credit Card, or
2)
Ask for Short Term Extension, or
3)
Arrange Monthly Installment
payments.
If you Pay by Credit Card, you then pay the credit card company. The IRS
does not accept credit card payments directly, so you need to go through one of
two independent credit card processers who charge a fee ( 2.5% of the amount, $4
for Debit Cards).
Short Term Extension
allows you to pay within 120 days. Penalties and
interest still apply, but there is no user fee.
Monthly Installment Payment Plan
lets you pay an amount each month on the same
date. The user fee is $105, $52 for direct debit, and $43 for low income
taxpayers on top of any penalties and interest
How to set up payments:
Credit Card Processors
1)
Link2Gov Corporation
1-888-729-1040
http://www.pay1040.com
2)
Official Payments Corporation
1-888-272-9829
http://www.officialpayments.com
Set Up Installment
Agreement
To pay by installment or
120 day plan
·
call IRS at 1-800-829-1040 or
·
go to local IRS Walk-in center (in
Santa Clara County at 55 S. Market St, San Jose)
·
fill Online Payment Agreement
Application by going to
http://www.irs.gov searching for “OPA” and filling
in the application form, or
·
file form 9465, you can do this
with or after your tax return
Important: File the return with as much of the tax due as possible, and make
payment arrangements. The sooner you do this, the lesser the penalties and
interest.
Information provided here
is a summary and not complete; for complete details refer to irs.gov
Compiled by John Lee VITA
San Pablo 4/09/09; summarized by Shahid Mujtaba – VITA @ Milpitas Public
Library 4/15/09
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