How to Apply for an Online Payment Agreement with the IRS

Owing money to the IRS can be a pain, and failure to pay can result in civil and criminal prosecutions. For many people who are facing upward of $50,000 in back taxes, penalty fees and interest rates combined, paying a one-time sum is nearly impossible. It’s important to setup an online payment agreement with the IRS to help with making the payments and avoiding any of the penalties associated.cashdollarspic

Qualifications for an Online Payment Agreement

In order to setup a payment arrangement online as an individual, you need to owe less than $50,000 to the IRS. Also, you must have filed all the required tax documents for the year to apply for the payment agreement. If you failed to file a form with your taxes, you will need to work that out first with the IRS before continuing onto a payment agreement.

To qualify for an online payment agreement for your business, you need to owe less than $25,000 in taxes for the current year or previous year. You must also have filed all the required forms in your return.

What You’ll Need to Apply for an Online Payment Agreement

To apply for an online payment agreement, you must go online to the IRS website.

For an individual payment agreement, you will need the following information to finish the application: full name, date of birth, filing status, valid e-mail address, physical address on your most recent filed return and social security number. If filing jointly, you will need both of your social security numbers for the application.

Businesses looking for a payment agreement will need to provide the following information: Caller ID from notice, Employee Identification Number (EIN), date you signed the EIN and the physical address on your most recent tax return.

Setting up a payment plan online is simple and can prevent you from having to deal with future criminal or civil judgments put against you by the IRS. Even if you can’t pay what you owe in one lump sum to the IRS, they do offer you good options.

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