There are many taxpayers who owe taxes and having difficulty paying the tax all at once. The IRS has a number of ways for people to pay their back taxes.

The IRS has initiated an effort to help individuals and businesses meet their tax obligation with new policies to help taxpayers pay back taxes and avoid liens.

Here are important tips for taxpayers who owe taxes to the IRS.

1. Get a loan to pay your tax obligation.
   The best tax tip for those who owe taxes is to get a loan to pay the entire tax obligation. Paying the tax debt in full is better than making installment payments to the IRS.
2. Request additional time to pay your tax debt.
   Taxpayers can request additional time to pay their tax through the Online Payment Agreement application at www.irs.gov or by calling 800-829-1040.
3. Pay off the tax debt with credit cards.
   The interest on a credit card may be lower than the interest and penalties imposed by the Internal Revenue Service.
4. Pay the tax balance by Electronic Funds Transfer.
   To pay using electronic funds transfer, use the Electronic Federal Tax Payment System by either calling 800-555-4477 or using the online access at .
5. Request an Installment Agreement to settle your tax debt.
   You can request an installment agreement if you are unable to pay the tax in full. The agreement is between you and IRS to pay the tax owed in monthly installments.
6. Request an Online Payment Agreement.
   If you owe $25,000 or less in combined tax, penalties and interest, you can request an installment agreement using the Online Payment Agreement application at www.irs.gov.
7. Request an Installment Agreement by mail.
   You can complete and mail an IRS Form 9465, Installment Agreement Request, along with your bill in the envelope you received from the IRS. The IRS will inform you (usually within 30 days) whether your request is approved, denied, or if additional information is needed.
8. Is your tax debt more than $25,000? Request an Installment Agreement.
   File a Collection Information Statement If you owe more than $25,000 in taxes. You may still qualify for an installment agreement if you owe more than $25,000, but you are required to complete a Form 433F, Collection Information Statement, before the IRS will consider an installment agreement.
9. Beware of User Fees.
   If an installment agreement is approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with lower incomes, the fee can be reduced to $43.
10. Check your withholding allowance.
    Taxpayers who have a balance due may want to consider changing their W-4, Employee’s Withholding Allowance Certificate, with their employer. A withholding calculator at www.irs.gov can help taxpayers determine the amount that should be withheld.

For more information about the Fresh Start initiative, installment agreements and other payment options, or for more tax tips, visit www.irs.gov or call 800-TAX-FORM (800-829-3676).

source: irs.gov

Here we go again.  Another Barack Obama nominee, this time for Health and Human Services secretary, is being investigated for failing to pay back taxes.  Tom Daschle, the former South Dakota Senator waited nearly a month after being nominated before informing President Obama that he had not paid years of back taxes, according to the Washington Post.

Dashle paid  $140,000 in back taxes and interest on January 2, 2009 and a few days later informed the White House and Senate Finance Committee. 

Obama’s transition team discovered in December that $15,000 of the $276,000 in charitable contributions claimed by Daschle lacked proper documentation. But Daschle waited until after amended returns were filed before he mentioned the larger tax liability.

Daschle spokeswoman Jenny Backus said he had known since June 2008 that his luxury car and driver provided by wealthy Democratic donor, longtime friend and business associate Leo Hindery might be taxable, but never expected the amount to be such a “jaw-dropping” sum and “thought it was being taken care of” by his accountant.

Hindery founded InterMedia Partners, a private equity firm, in 1988. Daschle was paid $1 million annually for his consulting services, the Senate Finance Committee said.

Daschle had an unreported consulting income of $88,333, in 2007.

“Senator Daschle is embarrassed and disappointed by these errors,” Backus said. “He apologized for his part in these errors and expressed his deep regret that the committee had to devote time to them.”

The White House acknowledged Friday that Daschle had “some tax issues,” which, the administration said, have been resolved and should not bar his confirmation as secretary.

A statement issued by the White House affirmed that Daschle “is the right person to lead the fight for health care reform.”

“Senator Daschle brought these issues to the Finance Committee’s attention when he submitted his nomination forms and we are confident the committee is going to schedule a hearing for him very soon, and he will be confirmed,” it said.

Why is it that these high ranking politicians are trying to get away with paying taxes.  I mean $140,000 in taxes is by no means an oversight, how could it be?

And in Daschle’s case, he calculated his strategic moves in when to pay the back taxes and when to inform Obama and the Senate Finance Committee.  It is the same old political sleeze that we all hate.  This is very disturbing and brings up the point that maybe elected officials should be held accountable.

And Daschle’s sleezy moves won’t even affect his nomination.  This is a travesty – I don’t care how the constituents spin it.  If someone in the private sector owed $140,000 in federal taxes, do you think they would be treated the same? 

I see no excuse for this and Tom Daschle’s nomination should be voided.  Shame on you! Shame on government!

Something must be done!