Client owes? It is not fun to be the one to tell the client they owe money. But if you explain why they owe, and then try to help them prevent owing in the future, it could be a great learning/teaching opportunity-- the client will appreciate the time you spend to help them.
I have these printed and at my site to hand out to clients--click image to open PDF and print 2-sided.
(click image to open PowerPoint of document to edit
I have these printed and at my site to hand out to clients--click image to open PDF and print 2-sided.
(click image to open PowerPoint of document to edit
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Quite a few people each year ask me how to fill out a money order. So I have decided to create this guide.
Where they will mail the payment depends on where they live and what they are paying (ex: mailing payment in with a 1040 tax return goes to a different address than mailing in with a 1040X tax return, etc.) rirs.gov/payments/pay-by-check-or-money-order
Where they will mail the payment depends on where they live and what they are paying (ex: mailing payment in with a 1040 tax return goes to a different address than mailing in with a 1040X tax return, etc.) rirs.gov/payments/pay-by-check-or-money-order
All the information below was put together over a year ago and I have NOT updated it. Please review fees on irs.gov before deciding.
Installment Agreements:
Before you sign up for an installment agreement, ask yourself if you can pay the balance due in 120 days.
If so, don't complete Form 9465 as you will get charged anywhere from $39 to over $200
If you can't pay it in less than 120 days (4 months) then you may want to consider applying for a Long-term Payment Plan (Installment Agreement) (Pay in more than 120 days with monthly payments). You have 2 options:
Pay monthly through automatic withdrawals
Pay each month (non-Direct Debit)
Fees apply when paying by card--use routing & account number to save money (and account numbers don't expire like debit cards.
If you have a client call to set it up over the phone, have them tell them they are low income to get the lower set up fee instead of the usual over the phone fee set-up fee of over $200!!
If you can pay in less than 120 days:
Pay Now
Fees apply when paying by card--use routing & account number to save money (also account numbers don't expire like debit cards so you won't miss payment).
Short-term Payment Plan (120 days or less)
Fees apply when paying by card--use routing & account number to save money (also account numbers don't expire like debit cards so you won't miss payment).
Here is the link for information on paying your Balance Due irs.gov/payments
Before you sign up for an installment agreement, ask yourself if you can pay the balance due in 120 days.
If so, don't complete Form 9465 as you will get charged anywhere from $39 to over $200
If you can't pay it in less than 120 days (4 months) then you may want to consider applying for a Long-term Payment Plan (Installment Agreement) (Pay in more than 120 days with monthly payments). You have 2 options:
Pay monthly through automatic withdrawals
- $31 setup fee (low income: setup fee waived)
- Plus accrued penalties and interest until the balance is paid in full
Pay each month (non-Direct Debit)
- $149 setup fee (low income: $43 setup fee that may be reimbursed if certain conditions are met)
- Plus accrued penalties and interest until the balance is paid in full
Fees apply when paying by card--use routing & account number to save money (and account numbers don't expire like debit cards.
If you have a client call to set it up over the phone, have them tell them they are low income to get the lower set up fee instead of the usual over the phone fee set-up fee of over $200!!
If you can pay in less than 120 days:
Pay Now
- $0 setup fee
- No future penalties or interest added
Fees apply when paying by card--use routing & account number to save money (also account numbers don't expire like debit cards so you won't miss payment).
Short-term Payment Plan (120 days or less)
- $0 setup fee
- Plus accrued penalties and interest until the balance is paid in full
Fees apply when paying by card--use routing & account number to save money (also account numbers don't expire like debit cards so you won't miss payment).
Here is the link for information on paying your Balance Due irs.gov/payments
The Disadvantages of paying with a credit card--think twice before you do it please. Some people prefer to pay their IRS debt with a credit card, but is it worth it? Here is an article that explains some of the drawbacks from doing so. https://www.creditcards.com/credit-card-news/pros-cons-paying-taxes-with-credit-cards-1282/
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The office of the Taxpayer Advocate Service-- They are YOUR voice at the IRS.
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. TAS is there to ensure that every taxpayer is treated fairly and that they know and understand their rights. TAS advocates can help if the taxpayer has tax problems that they can’t resolve on their own. 
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There are more than 130 Low Income Taxpayer Clinics (LITCs) the help with collection alternatives and more. LITCs represent low income individuals in disputes with the Internal Revenue Service (IRS), including audits, appeals, collection matters, and federal tax litigation. LITCs can also help taxpayers respond to IRS notices and correct account problems. Low income taxpayers who need assistance in resolving a tax dispute with the IRS and cannot afford representation, or who speak English as a second language and need help understanding your taxpayer rights and responsibilities, may qualify for help from an LITC that provides free or low cost assistance. The following link has a list of all the clinics and phone numbers for each. https://www.irs..gov/pub/irs-pdf/p4134.pdf
The next link below is a map based web page on which LITC locations can be found. 
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