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If I owe the IRS or the State of California, what are my payment options and payment plans available?

If you owe the IRS or the State of California, you have several options for payment and payment plans:

IRS Payment Options

  1. Full Payment: You can pay your tax bill in full when you file your return.
  2. Installment Agreement: If you can’t pay in full, you can apply for an installment agreement, allowing you to make monthly payments. You can set this up online through the IRS website if you owe $50,000 or less in combined tax, penalties, and interest.
  3. Offer in Compromise: This allows you to settle your tax debt for less than the full amount owed if you meet certain criteria regarding your ability to pay.
  4. Currently Not Collectible Status: If you’re facing financial hardship, you can request to be placed in currently not collectible status, temporarily halting collections.
  5. Credit/Debit Card Payment: You can pay via credit or debit card online, but there may be service fees involved.

California State Payment Options

  1. Full Payment: Similar to the IRS, you can pay your full tax balance directly to the California Franchise Tax Board (FTB).
  2. Installment Agreement: If you owe $25,000 or less, you can set up a payment plan online. For amounts over $25,000, you will need to apply and possibly provide additional financial information.
  3. Offer in Compromise: California also offers an Offer in Compromise program for those who cannot pay their full tax liability.
  4. Extension of Time to Pay: You can request a short extension to pay your taxes without incurring penalties.
  5. Credit/Debit Card Payment: Similar to the IRS, you can pay via card with associated fees.

Local Resources for Family Law and Tax Issues

In Sonoma County, there are several local services that can assist residents with family law and related financial issues:

  • Sonoma County LDA works hand in hand with Sonoma County residents to help them navigate family law matters. For more information, visit www.SonomaCountyLDA.com.
  • Sonoma Marin Process Server is dedicated to assisting Sonoma County residents with the process of service in family law cases. Learn more at www.SonomaMarinProcessServer.com.
  • Sonoma County Tax Services helps residents with financial issues related to divorce and custody tax matters. For assistance, visit www.SonomaCountyTax.com.
  • Sonoma County Divorce supports Sonoma County residents with divorce and real estate issues connected to divorce proceedings. Find out more at www.SonomaCountyDivorce.com.
  • Sonoma Tax Services provides help with divorce and real estate issues related to divorce. You can learn more at www.SonomaTaxServices.com.

General Tips

  • Stay Informed: Always keep records of your payments and any correspondence.
  • Contact Them: If you’re unsure about your options, contacting the IRS or FTB directly can provide clarity.
  • Seek Professional Help: If your tax situation is complicated, consider consulting a tax professional.

Make sure to act promptly to avoid additional penalties and interest!