ATS Offers Tax Advisory Services – We are here to help you all year long
If you have received an IRS notice of balance due, a notice of tax action,
or any other notice from the IRS – we highly recommend that you contact our
office (941) 708-5300. You will be instructed to submit a copy of the notice
FRONT AND BACK of all pages. You may use your Secure Client Portal
OR ZIX Secure Message Portal to safely submit your IRS letter and related information.
An ATS Staff member will review your notice and contact you with recommended
Tax Advisory Services, Estimated Fee for Service, and additional information
we need from you to quickly resolve your case.
Electronic Tax Payment and Agreement Options Available to
Taxpayers Who Owe
The Internal Revenue Service reminded taxpayers who have a tax bill that
there are several ways to make payments, and there are options for many
people who can’t pay their tax bill in full by the April tax deadline.
The deadline to submit 2021 tax returns or an extension to file and pay the tax
owed this year falls on April 18, instead of April 15, because of the
Emancipation Day holiday in the District of Columbia. Taxpayers in Maine
or Massachusetts have until April 19, 2022, to file their returns due to the
Patriots’ Day holiday in those states. Some taxpayers who were victims of a
natural disaster have even longer to file their returns.
The IRS reminds people to timely file their tax return and pay whatever they
can by the filing deadline to avoid late filing and interest penalties.
Sign in to pay and see payment history
Taxpayers can use their Online Account to securely see important
information when preparing to file their tax return or following up on
balances or notices. Taxpayers can make a same-day payment for a 2021 tax
return balance, an extension to file, or estimated taxes, which are all due by
April deadline for most taxpayers. They can also view:
- Their Adjusted Gross Income, Economic Impact Payment amounts
and advance Child Tax Credit payment amounts needed for their 2021
- Payment history and any scheduled or pending payments,
- Payment plan details and
- Digital copies of select notices from the IRS.
Ways to pay
- Electronic Funds Withdrawal (EFW): This option allows taxpayers to
file and pay electronically from their bank account when using tax
preparation software or a tax professional. This option is free and only
available when electronically filing a tax return.
- Direct Pay: Direct Pay is free and allows taxpayers to securely pay
their federal taxes directly from their checking or savings account
without any fees or preregistration. Taxpayers can schedule payments up to
365 days in advance. After submitting a payment through Direct Pay, taxpayers
will receive immediate confirmation.
- Electronic Federal Tax Payment System: This free service gives
taxpayers a safe and convenient way to pay individual and business
taxes by phone or online. To enroll and for more information,
taxpayers can call 800-555-4477, or visit eftps.gov.
- Credit card, debit card or digital wallet: Individuals can pay online, by
phone or with a mobile device through any of the authorized payment
processors. The processor charges a fee. The IRS doesn’t receive any
fees for these payments. Authorized card processors and phone
numbers are available at IRS.gov/payments.
- Cash: For taxpayers who prefer to pay in cash, the IRS offers a way to
pay taxes at one of its Cash Processing Companies at participating
retail stores. The IRS urges taxpayers choosing this option to start
early because it involves a four-step process. Details, including
answers to frequently asked questions, are at IRS.gov/paywithcash.
Check or Money Order Payments made by check or money order should be
made payable to the “United States Treasury.” To help ensure that the
payment gets credited promptly, taxpayers should also enclose a Form 1040-
V payment voucher and print on the front of the check or money order:
“2021 Form 1040”; name; address; daytime phone number; and Social
File by April 18, 2022 for most taxpayers
The most important thing everyone with a tax bill should do is file a return
by the April 18 due date, for most taxpayers (even if they can’t pay in full).
Taxpayers may also request a six-month extension to file by October 17,
2022, to avoid penalties and interest for failing to file on time.
Though automatic tax-filing extensions are available to anyone who wants
one, these extensions don’t change the payment deadline. It is not an
extension to pay. Visit IRS.gov/extensions for details.
Usually anyone who owes tax and waits until after that date to file will be
charged a late-filing penalty of 5% per month. So, if a tax return is complete,
filing it by April 18 is always less costly, even if the full amount due can’t be
paid on time.
IRS Free File is an easy, quick way to file that is available to eligible
individuals and families who earned $73,000 or less in 2021. IRS Free File
is available on IRS.gov.
Pay what you can
Interest, plus the late-payment penalty, will apply to any payments made
after April 18. Making a payment, even a partial payment, will help limit
penalty and interest charges. The fastest and easiest way to pay a personal
tax bill is with Direct Pay, available only on IRS.gov.
For a rundown of other payment options, visit IRS.gov/payments.
The IRS urges taxpayers to first consider other options for payment,
including getting a loan to pay the amount due. In many cases, loan costs
may be lower than the combination of interest and penalties the IRS must
charge under federal law. Normally, the late-payment penalty is one-half-of one
percent (0.5%) per month. The interest rate, adjusted quarterly, is currently
3% per year,compounded daily.
If a loan isn’t possible, the IRS can often help.
Online payment plans
Most individual taxpayers qualify to set up an online payment plan with the
IRS, and it only takes a few minutes to apply. Applicants are notified
immediately if their request is approved. No need to call or write to the IRS.
The IRS notes that online payment plans are processed more quickly than
requests submitted with electronically-filed tax returns. If a taxpayer just
filed their return and knows that they’ll owe a balance, they may be able to
set up a payment plan online before they even receive a notice or bill.
There are two main types of online payment plans:
- Short-term payment plan – The payment period is 180 days or less
and the total amount owed is less than $100,000 in combined tax,
penalties and interest. There’s no fee for setting one up, though
interest and the late-payment penalty continue to accrue.
- Long-term payment plan (Installment Agreement) – Payments are made monthly, and the
amount owed must be less than $50,000 in combined tax, penalties
and interest. If the IRS approves a long-term payment plan, also
known as an installment agreement, a setup fee normally applies. But
low-income taxpayers may qualify to have the fee waived or
reimbursed. In addition, for anyone who filed their return on time, the
late-payment penalty rate is cut in half while an installment agreement
is in effect. This means that the penalty accrues at the rate of one
quarter-of-one percent (0.25%) per month, instead of the usual one
half-of-one percent (0.5%) per month.
Taxpayers who do not qualify for an online payment agreement may still be
able to arrange to pay in installments. See Additional Information on
Payment Plans for more information.
Other payment options
Some struggling taxpayers may also consider using these other payment
If the IRS determines a taxpayer is unable to pay, it may delay collection
until their financial condition improves. However, the total amount owed
will still increase because penalties and interest are charged until paid in full.
Taxpayers can request a delay by calling the phone number on their notice or
Some taxpayers qualify to have their late-filing or late-payment penalties
reduced or eliminated. This can be done on a case-by-case basis, based on
reasonable cause. Alternatively, where a taxpayer has a history of
compliance, the IRS can typically provide relief under the First Time
Abatement program. Visit IRS.gov/penaltyrelief for details.
Offer in Compromise
Some taxpayers qualify to settle their tax bill for less than the full amount
due, through an offer in compromise. Though there is typically a $205 nonrefundable
application fee, it is generally waived for low-income taxpayers
and for offers based on doubt as to liability. The Offer in Compromise
PreQualifier tool can help determine eligibility for anyone interested in applying.
Here is more information on what an Offer in Compromise is: https://www.irsvideos.gov/OIC
ATS Bradenton Clients: If you need additional assistance, we are here to help you resolve
your IRS issues, contact us today to schedule a Zoom or Phone appointment.
You may schedule your appointment online at your convenience 24/7 OR by calling
(941) 708-5300. ATS is available year-round, Monday thru Friday from 10:00 am till 5:00 pm.
ATS Ellenton Clients: You may schedule your appointment online at your convenience 24/7 OR by calling
(941) 722-0470. ATS is available year-round, Monday thru Friday from 10:00 am till 5:00 pm.
We look forward to working with you!