Small Business Taxes & ManagementTM--Copyright 2008, A/N Group, Inc.
The Internal Revenue Service has introduced (IR-2008-77) several new features to the interactive Online Payment Agreement application, which will make it easier for taxpayers and their authorized representatives to make changes to existing installment agreements.
The system will now permit:
More than 75 percent of those eligible for an installment agreement can establish one using the online application, according to the IRS. Since launching in October 2006, more than 30,000 taxpayers have successfully used it to set up a payment agreement. (For more information and links go to www.irs.gov/businesses/small/article/0,,id=108347,00.html).
Eligible taxpayers who owe $25,000 or less in combined tax, penalties and interest can self-qualify, apply and receive immediate notification of approval for installment agreements--including pre-assessed agreements on tax year 2007 Form 1040 liabilities and paperless direct debit agreements.
Paying taxes on time and in full avoids unnecessary penalties and interest. However, taxpayers who cannot pay in full may request a payment agreement. To be eligible, a taxpayer must first file all required tax returns and be current with estimated tax payments, if applicable.
Copyright 2008 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536
--Last Update 06/09/08