I received notice stating I owe 1400 back taxes, how can I setup payment plan

Tax_questionQ) I received a notice stating i owe 1400 back taxes from 2009 they are giving me until the 30th of this month to pay. how can i setup a payment plan

A) If you received a notice stating that you owe back taxes and you would like to set up a payment plan, you can take the following steps:

  1. Review the notice: Before setting up a payment plan, it’s important to review the notice to ensure that the information is correct and that you agree with the amount owed.
  2. Determine your ability to pay: Determine how much you can afford to pay each month. This will help you to determine the amount of your monthly payment.
  3. Contact the IRS: You can contact the IRS by phone at the number provided on the notice or by using the “Online Payment Agreement” tool on the IRS website. Be prepared to provide your personal information, including your social security number, and the amount you owe.
  4. Request a payment plan: You can request a payment plan with the IRS. If you owe less than $50,000, you can apply for a payment plan using the “Online Payment Agreement” tool. If you owe more than $50,000, you will need to call the IRS to set up a payment plan.
  5. Provide financial information: The IRS may ask you to provide financial information, such as your income and expenses, to determine your ability to pay. Be prepared to provide this information if requested.
  6. Agree to the terms: Once you have set up a payment plan with the IRS, you will need to agree to the terms of the plan, including the amount of your monthly payment and the length of the plan.

According to the IRS website; You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately. However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full. Before you apply:
File all required tax returns;
Consider other sources (loan or credit card) to pay your tax debt in full to save money;
Determine the largest monthly payment you can make; and
Know that your future refunds will be applied to your tax debt until it is paid in full.
Fees for setting up an installment agreement:
$52 for a direct debit agreement;
$120 for a standard agreement or payroll deduction agreement; or
$43 if your income is below a certain level.
Apply for an installment agreement
Apply online if you owe $50,000 or less in combined individual income tax, penalties and interest;
Call the phone number on your bill or notice;
Complete and mail Form 9465, Installment Agreement Request (PDF). If you owe more than $50,000, you will also need to complete Form 433-F, Collection Information Statement (PDF). read more and see forms

You can also make payment arrangements on your state tax website if you owe state taxes. Please your state tax revenue website for more information.


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