| The Internal Revenue Service wants you to pay | | | | a tax return. Once you file, you want to use form |
| taxes on time. That being said, it understands this | | | | 9465 to request the payment plan. It costs $43 |
| is not always possible and has created a program | | | | to file the application. The IRS will then get back |
| for such situations. | | | | to you on what it is willing to do. The payment |
| The Internal Revenue Service is very upfront | | | | plan process is not an audit. Millions of people apply |
| about its goal in dealing with taxpayers. While it | | | | each year and the IRS considers it standard |
| obviously wants to collect all taxes due, it is also | | | | operating procedure. No red flags are raised when |
| focused on keeping you in the system. This | | | | you file the application. To the contrary, the IRS |
| attitude is a relatively recent change undertaken in | | | | tends to view you as an honest tax payer since |
| the 1990s. The IRS essentially determined it made | | | | you are acknowledging the full amount due and |
| better financial sense to have you in the system | | | | trying to find a way to pay. |
| versus spending hundreds of man hours hunting | | | | Importantly, the payment plan should be viewed |
| you down. In practical terms, this means you | | | | as a means to buy time. Making the monthly |
| need not have a panic attack if you do not have | | | | payments will eventually pay off the debt, but it |
| sufficient funds to meet your tax obligation. If | | | | will take years. Interest on the amount you owe |
| you panicked this past tax deadline, there was no | | | | will also continue to accrue. The best strategy for |
| need. | | | | using the plan is to make the monthly payments |
| The IRS will put you on a payment plan if you | | | | while saving up money to make a lump sum |
| cannot pay your taxes on time. The plan calls for | | | | payment to satisfy the debt. |
| monthly payments like a car loan, to wit, they are | | | | If you cannot pay the taxes you owe, do not |
| an equal amount each month so you know what | | | | panic. The payment plan option will keep you out |
| you are obligated to pay. | | | | of trouble with Uncle Sam. |
| You are only eligible for a payment plan if you file | | | | |