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By Roger Chartier

United States of America IRS Tax Information

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When Roger has some spare time, he posts here. Good articles!

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Ten tips for paying back taxes

The IRS can be brutal when it comes to money, and they want their money, so you had better pay close attention here to what is written to get through your back tax burden most easily.

1.The Fresh Start Program

The program from our IRS helps taxpayers with a burden and who have a hard time to get a fresh start.
Get involved in the Fresh Start program and as an individual or a small business you might be able to pay your back taxes relatively easily and without unnecessary misery. 
 Check out the IRS publication 594 here from this site to get more information about payment options or IRS's Fresh Start program.

2. Withholding arrangement with your employer

Change your W4 form information with your employer if you have one to be sure that they are taking enough out from you in the first place.

3. Offer In Compromise

An Offer In Compromise is an agreement that is between the IRS and between a taxpayer and it will settle the taxpayer tax debt for a smaller amount of money than is originally owed.
The IRS will investigate your finances and then the OIC can only be accepted by the IRS if they find that you genuinely can't pay the money in a lump sum or even through a payment system.

4. Installment Agreement - Request Form 9465

If your tax bill is less than $50,000 including interest and penalties then, you can apply to the IRS with
Form 9465 for an installment agreement. If they agree then move on from there. The IRS will provide you with an envelope for this. Mail the form and your tax bill to them. They usually decide within 30 days.
They might want more info.

You can qualify for the Installment Agreement for more than $50,000, but you need to use the Form 433F to apply and they will decide whether you can get the deal or not from there.

5. What about user fees?

When the IRS collects using a bank account withdrawal system the fees are $105.00, and or $52.00 for the approved installment agreement.
You might get away with a $43.00 fee if you are quite poor.

6. Extra time to pay the bill.

You can request a brief additional amount of time to pay through the Online Payment Agreement application at IRS.gov or by calling 800-829-1040.
The good part is that there usually isn't a set up fee to apply for the short term agreement.

7. Are credit card interest rates lower?

If that is the case, then you can use a credit card to pay your bill.
The combination of an interest rate from the IRS and their penalties might well be higher than just the interest rate from a credit card company.

8. Electronic Federal Tax Payment System

Using the electronic funds transfer method you can pay your taxes online using a check, cashier's check, money order or cash.
To use this method call 800-555-4477 or go online at www.eftps.gov

9. Paying your tax

For those folks who get a bill from the IRS saying that they have back taxes due, be sure to pay them ASAP or get a loan or whatever method to pay the bill.

10. Interest and penalties!

The IRS has penalties and interest rates that are higher than many lenders.

This gives us the idea that we are most likely better off paying the bill by borrowing the money elsewhere and taking care of our dear Uncle Sam first.
Good luck.