How to Pay IRS Debt From Overseas

Are you an American expat or US resident alien who owes money to the IRS? There are various options to pay your US taxes. If you are unable to pay your taxes all at once, you can request an installment agreement or an online payment agreement (US bank account required).

If you have a US bank account:

· Electronic Funds Withdrawal - When you e-file your return, you can at the same time authorize an electronic funds withdrawal from your checking or savings account

· EFTPS (Electronic Federal Tax Payment System) - Pay your taxes electronically using the internet. You must have a US bank account to register. Sign up at https://www.eftps.com/eftps/. Schedule your payment at least one day in advance of the due date. As an individual, you can schedule payments up to 365 days in advance.

· Federal Tax Application (same-day wire transfer) - Your financial institution will initiate a same day wire transfer. Your financial institution will generally charge a fee to do this.

· Check or money order - To pay by check or money order, make your check or money order payable to the “United States Treasury” for the full amount due. Do not send cash. Do not attach the payment to your return.

· Credit or debit card. http://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card - Card payment options are provided through services providers. There is a convenience fee charged by the provider based on the amount of your tax payment.

If you only have a foreign (non-US) bank account:

·  Credit or debit card. http://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card - Card payment options are provided through services providers. There is a convenience fee charged by the provider based on the amount of your tax payment.

· Federal Tax Application (same-day wire transfer) - If your foreign financial institution has a US affiliate, the affiliate may be able to initiate a same day wire transfer. Your financial institution will generally charge a fee to do this.

· Foreign taxpayers may also arrange for their qualified intermediary, tax professional, payroll service, or other trusted third party to make a deposit on their behalf using a master account. US Expat Tax Help can assist you with this method.

If you are unable to pay your IRS debt in full, you can request an onilne payment agreement or an installment agreement.

Online Payment Agreement (US bank account required)

You can generally request an online payment agreement by yourself at http://www.irs.gov/Individuals/Online-Payment-Agreement-Application  or authorize US Expat Tax Help with a Power of Attorney to apply for you if:

· You owe $50,000 or less in combined tax, penalties and interest.

· You have filed all required tax returns

You will need the following items:

· Social Security number or Individual Tax ID number

· Date of birth

· Caller ID number, shown at the top of your recent notice (if you have received one)

· PIN (if you have one) If not, you will need your Adjusted Gross Income (AGI) from your tax return

· Bank address

· Employer address

· Highest amount you can pay, and day of the month when you can pay it, and

· Have your tax return handy to verify information.

There are three payment plan options:

  1. Pay now (this means within 10 days)
  2. Short-term payment extension (pay full balance within 30, 60, 90 or 120 days). There will be no set up fee for this option but penalties and interest do apply if paying past the due date of the return (April 15)
  3. Monthly payment agreements longer than 120 days. The one-time user fee is $52 if you make your payments by direct debit and $105 if you make your payments by payroll deduction or sending in a check every month. Penalties and interest do apply if paying past the due date of the return (April 15)

If you owe between $25,000 and $50,000, you must sign up for a direct debit payment agreement. Direct debit is where your monthly payments are automatically deducted from your bank account. You must be able to pay off your taxes in full in 72 months or less.

Installment Agreements (US bank account required)

You can generally request an installment agreement if:

· You have filed all required tax returns

How to apply for an installment agreement?

 If you owe $50,000 or less in income tax, penalties and interest, you can apply for an installment agreement online by yourself at http://www.irs.gov/Individuals/Online-Payment-Agreement-Application  or authorize US Expat Tax Help with a Power of Attorney to apply for you.

· If you owe more than $50,000 or do not wish to use the online payment systems, you can complete the Form 9465, Installment Agreement Request and mail it to the IRS. If you owe more than $50,000, you must also complete the Form 433-F, Collection Information Statement

There are fees associated with setting up an installment agreement:

· $52 for a direct debit agreement

·  $105 for a standard agreement or payroll deduction agreement, or

·  $43 if your income is below a certain level