Owing the IRS is more common than you think. And settling your debt, as with most IRS problems, can be easy, too, once you learn where to start.
First off, you must know how much you owe in unpaid taxes and the penalties and/or interest, if any, to set up a payment plan. Don’t forget to check with the IRS and your copies of your tax returns to make sure everything matches. Next up, you must know how much user fees to pay to set up your payment plan.
Once you have the full amount, you can now plan around it and determine the most appropriate way to pay your dues.
In settling your debt, you have the option of doing it through one of the tax accounting firms in Texas or doing it by yourself by paying bit by bit.
Choosing to go with a provider of tax preparation and accounting and bookkeeping services means convenience at every turn as they will be handling the whole installment agreement process with the IRS.
On the other hand, choosing to settle your debt in smaller, more manageable amounts by yourself means you don’t have to pay for the services of a tax preparer.
Either way, you must fill out Form 9465 or the Installment Agreement Request form to start the process. For debts $50,000 or less, the Online Payment Agreement Application is available on the IRS website. For those exceeding $50,000, you must download the form and, along with Form 433-F or the Collection Information Statement, mail it to the IRS.