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