IR-2007-85 |
April 12, 2007 |
IRS Offers Several Tax Payment Options
WASHINGTON -
The Internal Revenue Service today reminded taxpayers to file their tax returns by the April 17 deadline and to pay as much as they can of any taxes they owe to minimize any accrued penalties and interest.
There are also alternative payment options to consider:
-
Request an Extension of Time to Pay — Based on the circumstances, a taxpayer could qualify for an extension of time to pay. The IRS is willing to allow extensions of time to pay in order to assist in tax debt repayment. A taxpayer can request an extension from 30 to 120 days depending on the specific situation. Taxpayers qualifying for an extension of time to pay of 30 to 120 days generally will pay less in penalties and interest than if the debt were repaid through an installment agreement. Taxpayers can request an extension of time to pay using the Online Payment Agreement option available on thisWeb site.
- Apply for an Installment Agreement — The IRS may allow taxpayers to pay any remaining balance in monthly installments through an installment agreement. Taxpayers who owe $25,000 or less may apply for a payment plan electronically, using the Online Payment Agreement application. Alternatively, taxpayers may attach a Form 9465, Installment Agreement Request, to the front of their tax return. Taxpayers must show the amount of their proposed monthly payment and the date they wish to make their payment each month. The IRS charges a $105 fee for setting up an installment agreement. The fee is reduced to $52 for those who establish a direct debit installment agreement and $43 for those with an income below a certain level (for more information, see Form 13844). Taxpayers are required to pay interest plus a late payment penalty on the unpaid taxes for each month or part of a month, after the due date that the tax is not paid. A taxpayer who does not file the return by the due date — including extensions — may have to pay a failure-to-file penalty.
-
Pay by Credit Card — Taxpayers can charge taxes on their American Express, MasterCard, Visa or Discover cards. To pay by credit card, taxpayers should contact one of the service providers at its telephone number or Web site listed below and follow the instructions. The service providers charge a convenience fee based on the amount of tax the taxpayer is paying. Taxpayers should not add the convenience fee to their tax payment.
For more information about filing and paying your taxes, choose “1040 Central” on this Web site or refer to the Form 1040 Instructions or IRS Publication 17, Your Federal Income Tax. Taxpayers can download forms and publications from this Web site or request a free copy by calling toll free 800-TAX-FORM (800-829-3676).
2007 FILING SEASON STATISTICS
|
Cumulative through the weeks ending 4/7/06 and 4/6/07
|
Individual Income Tax Returns
|
2006
|
2007
|
% Change
|
Total Receipts
|
87,732,000
|
88,581,000
|
1.0%
|
Total Processed
|
82,747,000
|
84,215,000
|
1.8%
|
|
E-filing Receipts:
|
|
|
|
TOTAL
|
57,740,000
|
61,345,000
|
6.2%
|
Tax Professionals
|
41,939,000
|
44,210,000
|
5.4%
|
Self-prepared
|
15,801,000
|
17,135,000
|
8.4%
|
|
Web Usage:
|
|
|
|
Visits to IRS.gov
|
102,281,000
|
111,215,000
|
8.7%
|
|
|
Total Refunds:
|
|
|
|
Number
|
71,835,000
|
73,622,000
|
2.5%
|
Amount
|
$164.499
|
Billion
|
$174.164
|
Billion
|
5.9%
|
Average refund
|
$2,290
|
$2,366
|
3.3%
|
|
Direct Deposit Refunds:
|
|
|
|
Number
|
46,917,000
|
49,935,000
|
6.4%
|
Amount
|
$124.366
|
Billion
|
$136.605
|
Billion
|
9.8%
|
Average refund
|
$2,651
|
$2,736
|
3.2%
|
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