Wednesday, June 1, 2016

Do you owe taxes?

The IRS offers several payment options for you to pay immediately or to make arrangements to pay in installments. If you receive a bill, don’t ignore it. A delay may cost you more in the long run. The longer you wait, the more interest and penalties you may have to pay. It’s simple to make payments using IRS electronic payment options.

You can pay your tax bills directly from your checking or savings account free with IRS Direct Pay. You receive instant confirmation that you made your payment. With Direct Pay, you can schedule your payment up to 30 days in advance. You can change or cancel your payment two business days before the scheduled payment date.

You can pay your taxes by debit or credit card online, by phone or with your mobile device. Your payment will be processed by a payment processor. The IRS does not charge a fee but convenience fees apply and vary by processor.

If you prefer to pay with your mobile device, use the IRS2Go app to pay with either Direct Pay or debit or credit card. IRS2Go is the official mobile app of the IRS. You can download IRS2Go from Google Play, the Apple App Store or Amazon.

If you're unable to pay your tax debt immediately, you may be able to make monthly payments. Before applying for any payment agreement, you must file all required tax returns. You can apply for an installment agreement with the Online Payment Agreement tool.

Who's eligible to apply for a monthly installment agreement online?

• Individuals who owe $50,000 or less in combined tax, penalties and interest and have filed all required returns
• Businesses that owe $25,000 or less in combined tax, penalties and interest for the current year or last year's liabilities and have filed all required returns

If you owe taxes, pay as much as you can as soon as possible to minimize interest and penalties. Visit IRS.gov/payments for all payment options.

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