Owe money to the IRS, consider these tax payment options.

E-options?
These options offer taxpayers the easiest and fastest way to make a full or partial payments. You can either pay by phone, online or using your credit card.
A short-term extension gives a taxpayer up to 120 days to pay without processing fee, but the late payment penalty and interest still apply.
A monthly payment plan or installment agreement gives the taxpayer more time to pay. Under this method the interest still apply but the late payment penalty is cut in half to 0.25 percent for any month an installment agreement is in effect.
Penalties for filing or paying taxes late.
Filing late. You must pay a failure- to-file penalty. The penalty is usually 5% per month for each month that a return is late, not to exceed 25%. The penalty is based on the tax not paid by the due date.
Paying tax late. The penalty is 0.5% of your unpaid taxes for each month that the tax is due. This could increase to 1 percent per month after a notice of deficiency is received.
Combined Penalties. The penalty for filing late is reduced by the penalty for paying late for that month, unless the minimum penalty for filing late is charged.
Accuracy related penalties. If due to understatement could reach 20 percent. (Source: IRS)

RS Speeds Lien Relief for Homeowners Trying to Refinance, Sell

The Internal Revenue Service an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home.

If taxpayers are looking to refinance or sell a home and there is a federal tax lien filed, there are options. Taxpayers or their representatives, such as their lenders, may request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan. (Source: IRS)

IRS Speeds Lien Relief for Homeowners

The Internal Revenue Service an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home.

If taxpayers are looking to refinance or sell a home and there is a federal tax lien filed, there are options. Taxpayers or their representatives, such as their lenders, may request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan. (Source: IRS)

Interest Rates Drop for the First Quarter of 2009

WASHINGTON – The Internal Revenue Service today announced in Revenue Ruling 2008-54 that interest rates for the calendar quarter beginning Jan. 1, 2009 will drop by one percentage point. The new rates will be:

• Five (5) percent for overpayments [four (4) percent in the case of a corporation];
• Five (5) percent for underpayments;
• Seven (7) percent for large corporate underpayments; and

Two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000.
(Source: IRS)

Facts to know regarding the First-Time Homebuyer Credit

Here are the some of the provisions you should know:

1. You must entered into a binding contract to buy a principal residence on or before April 30, 2010. It got extended to 2010!
2. If you meet provision number 1, above; then, you must close on or before June 30, 2010.
3. For purchases made in 2010, you had the choice to claim the deduction in either 2009 or 2010.
4. You qualify for a reduced long time credit if you have lived in the same principal residence for five of the last eight years that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The max credit for long time credit is $6,500. However, for MFS is $3,250.
6. The income limits for purchases after November 6, 2009 is $125,000 for singles and $225,000 for MFJ.
7. No credit is available if the purchase price of the home exceeds $800,000.
8. You must be 18 years old on the date of purchase; only one spouse must meet this requirement.
9. Dependents are not elegible for this credit.
Source: IRS

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