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Frequently Asked Tax Questions

IRS Procedures - Collection Procedural Questions


Rev. date: 1/2010


I am unable to pay my delinquent taxes. Will the IRS accept an Offer in Compromise?

previous topic occurrence Bill/Debt/Liability next topic occurrence
previous topic occurrence Monthly Payment Plan/Installment Agreement next topic occurrence
previous topic occurrence Offer in Compromise next topic occurrence
previous topic occurrence Tax Bill/Debt/Liability next topic occurrence

You may qualify for an Offer in Compromise if you are unable to pay your taxes in full or if you are facing economic hardship or other special circumstances.
Note:
Offer in Compromise Application Fee - Your offer must include the $150 application fee or a completed Form 656-A, Income Certification for Offer in Compromise Application Fee and Payment.   If you are requesting an exception of the fee because of your income.  Offers received without the $150 fee or a complete Form 656-A will not be accepted for processing.  Please see Step Five on Page 12 of this package for more information on the application fee and to determine if you qualify for the exception. 

Rev. date: 1/2010


Is there any special assistance available if you are experiencing economic harm or as systemic problem, or are seeking help in resolving tax problems that have not been resolved through normal channels?

previous topic occurrence Offer in Compromise next topic occurrence
previous topic occurrence Taxpayer Advocate next topic occurrence

Yes.  The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. 

The service is free, confidential, tailored to meet your needs, and available for businesses as well as individuals. There is at least one local taxpayer advocate in each state, the District of Columbia, and Puerto Rico.

You can contact TAS by:
To get a copy of From 911 or learn more about TAS go to www.irs.gov/advocate.

Rev. date: 1/2010


Can I make installment payments on the amount I owe?

previous topic occurrence Monthly Payment Plan/Installment Agreement next topic occurrence

Yes. If you cannot pay the full amount due as shown on your return, you can ask to make monthly installment payments. If your request to pay in installments is granted, the following conditions apply.
To request an installment agreement send Form 9465 (PDF), Installment Agreement Request, with your return. To request a payroll deduction installment agreement, use Form 2159, Payroll Deduction Agreement.
To request a direct debit Installment Agreement, use Form 433-D, Installment Agreement.
1.   Advantages of a direct debit installment agreement to the taxpayer include:
 
You should receive a response within 30 days if you submit the form with your return. For more details on installment payments, refer to the references below. Or call the IRS toll-free at 800-829-1040.

Rev. date: 3/2010


What kind of interest and penalties will I be charged for filing and paying my taxes late?

previous topic occurrence Bill/Debt/Liability next topic occurrence
previous topic occurrence Interest next topic occurrence
previous topic occurrence Interest and Penalties next topic occurrence
previous topic occurrence Penalty for Underpayment next topic occurrence
previous topic occurrence Tax Bill/Debt/Liability next topic occurrence
previous topic occurrence When To File next topic occurrence

Interest is compounded daily and charged on any unpaid tax from the due date of the return until the date of payment.
In addition, if you filed on time but didn't pay on time, you'll generally have to pay a late payment penalty.
If you did not file on time and owe tax, you may owe an additional penalty for failure to file unless you can show reasonable cause.
Note: If you feel this as assessed in error you may refer to Publication 1, Your Right as a Taxpayer.