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OLT TAX CORNER ~ Payments
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 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? |
| 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. |
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| What is Form 1040V? |
| 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. |
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| How do I know if I need Form 1040V? |
| 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. |
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| Where can I find Form 1040V and its instructions? |
| You can find Form 1040V and its instructions on the IRS website . Your tax provider should also be able to provide you with one. |
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| Can I make my estimated tax payments using a credit card? |
| Estimated tax payments can't be made by credit card within the software. To pay your taxes by credit card please visit the IRS Website for more details. |
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| 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? |
| 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. |
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