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Cormier & Rea announce additional office at 483 Summer St, Ste 2000, Arlington, MA

Online Payment Agreement Available for federal taxes

Categories Tax Tips (Fed)

Online Payment Agreement Available

Taxpayers who owe delinquent federal income taxes will now be able to apply online for a payment agreement. The Online Payment Agreement (OPA) application that is available on www.irs.gov provides an easy way to voluntarily resolve tax liabilities.

The new web-based application allows eligible taxpayers or their authorized representatives to self-qualify, apply for, and receive immediate notification of approval.

Taxpayers must have filed all required tax returns in order to use the online application. They should also have the following information available:

  • Balance due notice from the IRS.
  • Social Security Number or Individual Taxpayer Identification Number.
  •  Personal identification number, which can be established online using the caller identification number from the balance due notice.

Three payment options are available when applying online:

  • Pay in full. Taxpayers who pay within 10 days save interest and penalties.
  • Short-term extension. Receive a short-term extension of up to 120 days. No fee is charged, but additional penalties and interest will accrue.
  • Monthly payment plan. A $43 user fee will be added to the amount owed, and interest and penalty will continue to accrue on the unpaid balance.

To access the application go to www.irs.gov, use the pull-down menu under “I need to…” and select “Set Up a Payment Plan.” The application is available Monday through Friday from 6 a.m. to 12:30 a.m., Saturday from 6 a.m. to 10 p.m., and Sunday from 4 p.m. to midnight (all are Eastern Time).

This message brought to you by: Cormier & Rea, Inc. Sturbridge MA. Providers of Income tax planning and preparation and financial planning. For more information about this or any other issues regarding income tax planning or preparation or financial planning, feel free to contact us. Like Cormier & Rea, Inc. on Facebook for timely updates.

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