The tax season is almost ending, and like any other law-abiding, tax-paying citizen of the country, Chris is
aware of his options. He knows that there are four ways to pay the personal income taxes. For convenience
and efficiency, these are the available options:

1. Never send cash in the mail.

2. You can pay with cash at participating retail partner locations nationwide, for a fee. The IRS partners with
VanillaDirect to offer a pay-with-cash option at participating retailers, including 7-Eleven, Walmart, CVS,
Walgreens, Dollar General, and others. The limit is up to $500 per payment. You must first complete a pre-
payment process online at www.irs.gov/payments before going to the store. Contact Azmoneyguy or go to
www.irs.gov/payments for further details.

3. If you e-file, you can file and pay in a single step with an electronic funds withdrawal. If you e-file on your
own, you can use your tax preparation software to make the withdrawal. If you use a tax professional to e-file,
you can ask the preparer to make your tax payment electronically.

4. You can pay taxes electronically any day of the week and at any time of the day. See Azmoneyguy or go to
www.irs.gov/payments for further details.

5. You can also pay by check or money order. Make your check or money order payable to the United States
Treasury. Be sure to list the Social Security number and the tax period that the payment is to be applied to. If
you do not, then the IRS or State Department of Revenue or Franchise Tax Board can assign the payment to
the period they want to, and this could increase penalties and interest if there are other year taxes owed as
well.

6. Pay your taxes in person (most local IRS Taxpayer Assistance Centers will accept cash payments from
taxpayers in person, but you must schedule an appointment in advance. Not all locations accept cash
payments, so confirm before visiting.)

7. Whether you e-file your tax return or file on paper, you can also pay with a credit or debit card. The payment
processor that handles your payment will charge a processing fee. No part of this fee goes to the IRS.

8. The credit or debit card processing fee may be deductible on business returns, including IRS Form Schedule C
 businesses and other business returns. However, for individual income tax returns, the credit or debit
card convenience fee is a miscellaneous itemized deduction that is currently not deductible under
current tax law. Check with your tax professional for the most current rules.

9. Be sure to write your name, address, and daytime phone number on the front of your payment. Also, write
the tax year, form number you are filing, and your Social Security number.

10. Complete Form 1040-V, Payment Voucher, and mail it with your tax return and payment to the IRS. Make
sure you send it to the address listed on the back of Form 1040-V. This will help the IRS process your payment
and post it to your account. You can get the form on IRS.gov.

11. Remember to enclose your payment with your tax return, but do not staple it to any tax form.

12. Pay your tax bill monthly if you are not able to pay in full. Enter an installment plan with the Internal
Revenue Service. Therefore, if you owe up to $50,000, you will be able to file a Form 9465 and inform the IRS
as to what date, each month, the tax bill will be paid and what amount. If your payment is completed within six
years (72 months) of the beginning date of the plan, the IRS is required to accept the plan under the new
Regulations, and they will NOT file a tax lien against you or your property.

However, if more than $50,000 is owed, a Form 9465 and a financial statement disclosure Form 433-A for
personal assets, and a Form 433-B if a business is owned is required. If you owe more than $50,000, the IRS
WILL file a tax lien against you while you are making payments. Each program also charges a setup fee and
interest. The interest charged is compounded DAILY, not monthly!

You must also agree to keep current on tax filings and future tax payments for the next 5 years as well.

This plan is for ONE time only. It is not meant to be used year after year, and the IRS will terminate the plan
after you start it if you do not pay future taxes on time while you have the installment plan in place. This means
you will have to start over again and pay the fees again to reinstate the new plan. (Form 9465 allows you six
years (72 months) to pay taxes. Both businesses and individuals can set up payment plans.)

13. You can also ask for a SHORT extension of up to 180 days to pay. This short-term extension is available
on the IRS website, under the Online Payment Agreement tool. With the extension, there are reduced
penalties and interest, and no setup fee is required.

14. You can also request an Offer in Compromise (OIC) as a last resort. The OIC is a way to reduce the
amount of taxes owed to the IRS. You can’t have any unfiled tax returns to request an OIC. This is a lengthy
process with no guarantee that the OIC will be accepted. Offers in Compromise should be processed and
completed by a tax professional.

This is not a DIY program! Fees vary among tax professionals, so ask around. Find someone who has
successfully completed OICs before. The IRS will want to know about all your income and expenses from all
sources and may not agree on how much you spend on living expenses. If you qualify, the OIC program is a
great way to get a fresh start and a clean slate with the IRS.

15. Congress passed a law that allows the US State Department to deny or revoke your passport if you have a
seriously delinquent tax debt – currently defined as more than $66,000 in unpaid federal tax (including
assessed penalties and interest), adjusted annually for inflation – and do not have a written payment
agreement in place.

16. Many states allow the same opportunities (in-person payments, mailing checks, payment plans, credit
cards, automatic withdrawals from checking or savings accounts, and offers in compromise). Check with your
state for local rules.

If you don’t have enough taxes withheld from your pay, then you may need to make Estimated Tax Payments
for the next tax year. If you’re self-employed, you normally pay your taxes this way.

Here are some tips you should know about Estimated Taxes:

1. You should pay estimated taxes in the current year if you expect to owe $1,000 or more when you file your
federal tax return. Special rules apply to farmers and fishermen.

2. Estimate the amount of income you expect to receive for the year to determine the amount of taxes you may
owe. Make sure that you consider any tax deductions and credits that you will be eligible to claim. Life changes
during the year, such as a change in marital status or the birth of a child, can affect your taxes.

3. You normally make estimated tax payments four times a year. The dates that apply to most people are April
15, June 16, September 15, and January 15 of next year (for the previous year ended). These dates may shift
slightly when they fall on a weekend or holiday, so confirm the current year’s due dates at IRS.gov.

4. You may pay online or by phone. You may also pay by check or money order, or by credit or debit card. If
you mail your payments to the IRS, use the payment vouchers that come with Form 1040-ES, Estimated Tax
for Individuals.

5. You can pay your estimates with cash at participating retail partner locations nationwide. Payments are
limited to $500 per payment, and a pre-payment process must be completed online at www.irs.gov/payments
before visiting the store. Go to www.irs.gov/payments for details.

6. See Azmoneyguy or another tax professional to find out if you owe estimated taxes.

Call today, don’t delay! See how this affects you. We can be reached at 602-264-9331 and on all social media under azmoneyguy.

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