Posted On February 27, 2014

Payment options exist if balance due is owed to the IRS

If a taxpayer has an amount due on his 2013 personal tax return, form 1040, there are several options for making payment. In Nevada or elsewhere, the standard method of paying the amount due to the IRS is to make a check, cashier’s check or money order payable to the U.S. Treasury and send with your return. Payment options, however, are available.

Payment can be made by debit or credit card on the IRS website. There is also something called the Electronic Federal Tax Payment System (EFTPS), which is a system for paying taxes electronically via the Internet. This also works with a phone using the EFTPS Voice Response System. This is great news for those who can’t seem to get to their snail mail but are adept at doing financial transactions on the Internet with ease and promptness.

If unable to pay the full amount due send in the return in any event. Then apply for an installment agreement by filling in Form 9465, requesting a monthly payment plan. A taxpayer can apply for the installment program also by going to the IRS website. In order to qualify, the individual must owe $50,000 or less in the total of the tax, penalties and interest, and is not paying under an installment plan already.

Before entering into a prolonged process with payments, an individual taxpayer may want to try other options. These could include a credit card, a family loan, mortgage proceeds or other unique fund-raising method first. Clearly, not having to deal with an installment agreement is better if a person can come up with any other alternative payment method.

Taxpayers in Nevada and nationwide are gearing up for the Form 1040 Individual Income Tax Returns just around the corner. One way to anticipate and head off IRS problems is for the individual to get the tax picture in order early, and then if necessary pursue funding sources. For those who may have a payment problem, early preparation may mean the difference between a close call of relief and a permanent headache through 2014.

Source: Here are payment options if you owe the IRS this year