How to Make Payments on Income Taxes

How to Make Payments on Income Taxes

The majority of U.S. citizens are able and willing to pay their taxes. However, sometimes the unexpected happens, leaving people without the means of paying all their income taxes at one time. Fortunately, the IRS offers a payment plan option. It's important that you follow some simple guidelines to ensure you make correct and timely payments.

Instructions

    1

    Apply for the payment plan, commonly referred to as an installment agreement. You can either use IRS Form 9465, "Request for Installment Agreement," or apply online using the Online Payment Agreement Application. If you owe in excess of $25,000 in taxes, interest and penalties you also may be required to complete Form 433-F, Collection Information Statement.

    2

    Establish payroll deductions to ensure your payments are made on time. The IRS recommends the payroll deduction method and you can call 800-829-1040 to set it up.

    3

    Contact the IRS as soon as you're aware that you will not be able to make a payment on time. Failure to make a payment on time could result in penalties or default on your installment agreement. Default can result in tax liens, levy actions and a mark on your credit report.



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