How to Pay Taxes in Installments
A number of people face the problem of paying the full amount of their taxes. Most have limited finances and as a result, find it hard to make the payment. Therefore, they want to pay taxes in installments. Some people prepare their income tax return and find out that they are short on what they can pay at that moment. For people like these, it is best to send their tax return along with a contract that will allow them to pay in monthly installments.
Things Required:
– Printer
– Calculator
– Calendar
– Postage stamps
– Envelopes
– Pen
– Tax preparation software
– Computer
Instructions
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1
Getting started
First, complete and sign the federal income tax Form 9465, Installment Agreement Request from the Internal Revenue Service website. You can also get the form from IRS offices and Package X. Write your name, social security number and address in the form. Skip the lines that want you to provide your phone number, bank number and employer number. This is information which is not that important. After that, write the form number that you have – 1040, 1040 EZ or 1040A; the tax year, if it is the present tax return along with the amount of tax which is due. Using your computer and printer you can easily these forms and prepare them at home. -
2
See how much money you can pay
Determine how much you can send in installments. Try to make this proportionate to the full amount in an effort to show you want to pay the dues. See how much you can easily pay every month. You might want to use some income tax software or a calculator for help. Do not go overboard and try to pay all of the taxes within a year. Provide the day of the month that you will make payments to the IRS. Carefully select the day depending on your payday and the speed of the delivery company. Moreover, you can give them your bank account number and ask them to take the amount on a particular day each month. -
3
Contract
Sign the form but if you are married, then you both need to sign it. Send it with the income tax return and mail it in an envelope with the proper postage to the IRS with the first payment. IRS will charge you a $43 fee for making the installment arrangements. Make sure you know they will charge interest on the amount pending.
