How can I apply for a payment plan with the IRS for taxes owed?

Perhaps one of the most worrisome tasks is filing a tax return only to find out that money is owed to the Internal Revenue Service. In most cases, tax filers are concerned not just about the amount of tax that is owed, but how to go about paying the taxes. In some cases, tax filers may be able to request a tax installment agreement with the Internal Revenue Service for repayment.

Requesting a Tax Installment Agreement

For those who have filed their taxes and realize they owe money to the Internal Revenue Service, the initial concern is how to pay that amount.  Tax filers may request an installment agreement from the IRS for repayment of taxes. This installment agreement request is done on Form 9765 if a taxpayer wishes to make payments themselves, and Form 2159 if they wish to have the payments deducted from their pay.

Direct Payment to the IRS

Taxpayers may consider less expensive alternatives to the IRS tax installment agreement. Late payment penalties will apply unless the taxpayer is able to prove that there is a valid reason that he cannot pay the tax owed immediately. In addition, penalties will be applied to the entire balance owed until it is paid in full. These penalties continue until they reach 25% of the amount that is owed to the IRS originally.

IRS Fees for Installments

There are fees that are involved in filing for a tax installment agreement. Taxpayers who wish to pay by check will be required to make an initial application with a $105 fee to the Internal Revenue Service. Those who wish to use a direct debit plan will be charged $52. The Internal Revenue Service reserves the right to reject applications for tax installment agreements.

Tax Attorney's can be of Assistance

For those taxpayers who have filed their taxes and owe the Internal Revenue Service money, a qualified tax attorney should be consulted.  A reputable tax attorney may be able to assist taxpayers in getting the amount of penalties reduced, setting up more favorable terms with the IRS, and helping avoid other costly fees and penalties.