IRS Payment Plan Help: Owing money to the IRS is never a fun thing, and it’s a more common thing than people think. Often families get hit with a large tax bill way after April 15th, and aren’t sure exactly how to pay for it. There are things that you can do to make this bill a little easier on your budget, and here are a few suggestions.
Setting up your IRS Payment Plan
First, set up a payment plan with the IRS. By calling the IRS and talking with a representative, it’s very likely that you will be able to set up a monthly payment plan to pay off the money that you owe. They want their money, be sure of that. So they will do anything they can to help you pay that money to them. You can also talk to a tax agency like HR Block to see if there is any way you can get your taxes and tax bill lowered. They may find a deductible that you missed; this is probably a very likely scenario as they work with taxes all day and are very well versed in tax law.
Finally, If you decide that the monthly payment plan is not the way to go, you can contact the IRS and tell them that you have a lump sum to pay them that is less than the sum they want. If you offer to pay most of the bill upfront, they may actually drop the rest of the bill. The logic is the same as credit card companies: they know you owe money and that you may not have all of it. Instead of risking getting nothing from you, they will accept 75% of the bill in cash and drop the rest. You can often reason with the representative and get your bill lowered, or talk to a tax agency to help you out with this.
IRS Payment Plan Help