5 Tips for Taxpayers Who Owe Money to the IRS

While many Americans will be getting a tax refund this year, many will be getting a tax bill from the IRS.  These lucky people will owe the IRS money and many will be unable to pay the entire bill.  What should these people do?

There are several options that the IRS offers in this situation. In some situations, leniency is not an option and payment must be made. The IRS does expect immediate payment and it is usually a good idea to take out a loan and pay off the IRS.

If additional time is needed, the IRS will evaluate the individual case and depending on the circumstances, will often give a time extension. The IRS does take credit cards, and electronic fund transfers, and in some cases, installments are allowed. Depending on the amounts owed, installment agreements can be made via online agreements or IRS Form 9465 one-time, minimal. user fee will be assessed on these installments.

The last option that people can use is to have money withheld from their W-4.

If you discover that you owe the IRS money and are unsure of which option is best for you, give Person CPA Group a call and we can help you with your decision.

David W Huff, CPA, PFS, MS is a partner at Person CPA Group. He provides clients with tax preparation and consulting services, accounting services, retirement plan and benefit consulting, accounting software technical support and training, and management advisory services. His specialty is helping new businesses organize their operations to maximize tax savings and move quickly from start-up to profitability. You can reach David by email at: david@personhuffcpa.com