Receiving Your Tax Refund
When you file your tax return with us, you’ll need to provide your bank account details. If you’re eligible for a federal and/or state tax refund, the funds will be deposited directly into this account. However, if you prefer not to share your bank information, the IRS or your state’s Department of Revenue will mail you a check for any refund you’re owed.
Paying Your Tax Bill
The bank account you enter on your tax return isn’t just for receiving refunds; it’s also used to pay any taxes you owe. If you have a balance due, the payment will be automatically deducted from this account on the tax deadline, or if the deadline has already passed, as soon as your return is processed.
Setting Up a Payment Plan with the IRS
If you find yourself unable to pay the full amount of taxes due all at once, there's no need to worry. During the filing process, you can select the option to pay later.
Once your tax return has been accepted, you can visit the IRS website directly to apply for a payment plan. It will guide you through creating or signing into your IRS Online Account, where you can manage your tax payments.
By setting up an IRS Online Account, you'll gain access to a wealth of information, including your personal tax details, payment plans, and tax records. You'll also be able to view any notices or letters the IRS has sent you, helping you stay on top of your tax responsibilities.
For more detailed guidance on setting up a payment plan with the IRS, feel free to visit this link: https://www.irs.gov/payments/payment-plans-installment-agreements
Setting Up a Payment Plan with Your State
Many states also offer the option to set up a payment plan for your state taxes. However, the process can vary from state to state. To get started, you'll need to check with your state's Department of Revenue for specific instructions:
Applying for the IRS hardship program
If you're experiencing financial hardship and can't pay your tax bill, the IRS offers several options to help you manage your tax debt. Here's a quick rundown of the steps you can take:
- Offer in Compromise (OIC): This program allows you to settle your tax debt for less than the full amount you owe. To apply, you'll need to complete Form 656, "Offer in Compromise," and Form 433-A (OIC) or 433-B (OIC), which detail your financial situation. Use the IRS's Offer in Compromise Pre-Qualifier tool to see if you might be eligible.
- Installment Agreement: If you can't pay your taxes in full, you can apply for a payment plan. You can request a short-term payment plan (up to 180 days) or a long-term installment agreement. You can apply online using the IRS Online Payment Agreement tool, or submit Form 9465, "Installment Agreement Request."
- Currently Not Collectible (CNC) Status: If paying your tax debt would cause significant financial hardship, you can request to be placed in CNC status. This means the IRS temporarily pauses collection efforts. To apply, you'll need to provide detailed financial information, typically using Form 433-F, "Collection Information Statement."
- Request a Penalty Abatement: If you have a reasonable cause for not paying your taxes on time, you can request a penalty abatement. This can reduce or eliminate penalties. You can submit Form 843, "Claim for Refund and Request for Abatement," or call the IRS to explain your situation.
- Temporary Delay in Collection: If you can't make any payments due to financial hardship, you can request a temporary delay in collection until your financial situation improves.
We recommend contacting the IRS directly to discuss your situation and provide financial information. Remember, it's important to communicate with the IRS as soon as you realize you can't pay your tax bill.