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I owe the IRS money…now what?

The 2013 tax season just ended and you owe the IRS—what happens next? First and foremost, file your return and pay as much to the IRS as possible. Better late than never!

Consider borrowing from a bank or other source. The interest on a bank loan is usually less than the fees and penalties the IRS charges on late taxes.

Another option is to make an Online Payment Agreement, which allows you to pay your balance over time if you owe $50,000 or less. In this case, the best way to apply is by using the IRS Online Payment Agreement tool located on the IRS website. This option offers the opportunity for monthly debit payments so one won’t be missed.

If you owe more than $50,000 or want to make payments for more than six years, refer to the Collection Information Statements, Form 433-A or Form 433-F.

If none of these options works for you, consider an Offer in Compromise, which, if approved, allows you to settle your tax debt for less than the full amount owed. The IRS will look at many factors before deciding to accept your offer.

The IRS often accepts an offer to settle if the proposed amount represents the maximum the IRS can collect within a reasonable timeframe. To see if you qualify for this option, view the Offer in Compromise pre-qualifier tool on IRS.gov.

But don’t wait till then to call in an expert! The pros at Patrick & Robinson CPAs can help you figure out your best approach to 2013’s taxes—and also help you plan for 2014 so you don’t deal with this issue again.

Contact us at 904-396-5400 or office@CPAsite.com.

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I am so much more comfortable with how our finances are now being handled. Thanks for your help!
Dr. Randy T. HodgesSenior Pastor HernandoChurch of the Nazarene

Frequently Asked Questions

Q.

How can I increase my child’s financial aid?

A.

Several strategies exist that may increase the amount of aid your child is eligible for:

  • Try to avoid putting assets in your child’s name. Investments owned by a child can impact...
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