Can I Make Payments On Money I Owe To The Government?
Many individuals owe money to the government– you’re not the only one. If you’re concerned about making tax payments for the current year, you can make them with the vouchers provided or by themselves with notes specifying what the payments are for. This process is called making “Estimated Payments.”The idea is to pay the government on a quarterly basis so that when you file your taxes, you don’t owe any penalties or interest. If you owed taxes on your last tax filing, your tax preparer may have given you quarterly vouchers to use for making these estimated payments.
If you owe money on prior years, you can still make payments, but make sure you write on your check the year the payment belongs to. Many tax payers enter in a formal agreement to make monthly payments to pay off a tax liability; however, even without an agreement, you can pay the government off. If you were provided with any transmittal documentation, use it.
In order to avoid delays and confusion, make sure you have the correct address for tax payments. Most likely it is not the same address you used to file your tax returns. The government has different addresses for payments and those vary by state.
You can pay the government with checks, cash, money orders, electronic funds transfers, cashier’s check and with credit cards. If you are paying with cash, it is better to do it in person and to get a receipt. Otherwise, you have no way to prove you made a cash payment. Make copies of all checks and other forms of payment you forward to the government. With the volume of payments and paperwork the government receives, it is not rare for payments to get lost and be misapplied.
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