|If I owe on my federal return, do I wait for the IRS to contact me, or do I go ahead and send in the payment voucher with the amount owed?||Top |
|Do not wait for the IRS to contact you. If you owe taxes, your payment needs to be made by the tax due date in order to avoid penalties and interest. The due date is April 15. If April 15 is a holiday or falls in the weekend, then the due date is the next day that is a business day. For taxyear 2011, the due date is April 18, 2011. |
|What is Form 1040V?||Top|
|Form 1040V is a payment voucher that you need to send in with any check or money order for any balance due on your tax return.|
|How do I know if I need Form 1040V?||Top|
|If you have a balance due on your tax return and you owe taxes to the IRS, you should use a Form 1040V to make your payment.|
|Where can I find Form 1040V and its instructions?||Top|
|You can find Form 1040V and its instructions on the IRS website . Your tax provider should also be able to provide you with one.|
|Can I make my estimated tax payments using a credit card?||Top|
|E-Payments can be used to pay your quarterly estimated taxes. Taxpayers can make credit card payments whether they file electronically or file a paper return. Credit card payments can be submitted via the tax software when filing electronically. Credit card payments can also be made over the telephone and by filing on line. The IRS does not set or collect any type of fee for credit card payments, but the private sector companies the IRS has authorized to process these payments do impose convenience fees. The tax payment sent to the U. S. Treasury and the convenience fee are listed separately on the cardholder’s credit card statement.|
For those who e-file their taxes, some tax software developers offer integrated e-file and e-pay combinations for those who choose to use a credit card to pay a balance due. The software accepts both the electronic tax return and the credit card information. Subsequently, the tax return and tax payment data are forwarded to the IRS and the credit card data is forwarded to the payment processor.
For the 2011 filing season, the IRS has awarded contracts to two companies to accept credit card charges from both electronic and paper filers. Each company offers both phone and Internet payment services and each charges a convenience fee for the service. Fees are based on the amount of the tax payment and may vary between companies. The two companies are:
Anyone may use these services to charge taxes to an American Express, Discover, MasterCard or VISA credit card.
- Official Payments Corporation, 1-800 2PAY-TAX (1-800-272-9829), 1-877-754-4413 (Customer Service), and
- Link2Gov Corporation, 1-888-PAY-1040 (1-888-729-1040), 1-888-658-5465 (Customer Service).
|After completing my tax return this year, I discovered I actually owe taxes. I do not have the money to pay it all at once. Is there any way I could set up a payment plan with the IRS?||Top|
|Yes. If you cannot pay the full amount due as shown on your return, you can ask to make monthly installment payments. However, you will be charged a one-time user fee of $43.00, as well as interest on any tax not paid by its due date. Also, you can be charged a late payment penalty unless you can show reasonable cause for not paying the tax by April 15 even if your request to pay in installments is granted. Before requesting an installment agreement, you should consider less costly alternatives such as a bank loan. |
To request an installment agreement, send Form 9465, Installment Agreement Request, with your return or call (800) 829-1040. You should receive a response within 30 days. For more details on installment payments, refer to Tax Topic 202, What To Do If You Can't Pay Your Tax, or Publication 594, Understanding the Collection Process.