The Internal Revenue Services (IRS) allow taxpayers to create or access their online payment plans. However, there have been some key changes recently made by the IRS with regards to its identity verification process to protect tax information better. It’s important that you’re aware of these recent changes and keep yourself updated at all times.
Taxpayers who can’t pay a tax bill in full are now given an option to pay through an installment agreement. An installment agreement is typically sought out by a taxpayer who will take more than 120 days (about four months) to pay their balance due.
You can apply for an installment agreement online if you owe the IRS $50,000 or less in combined individual income tax, penalties, and interest. Traditionally, the following information is asked from you when you apply online:
Now, you’ll need to do a bit more than the above-mentioned information. To be specific, you will also need to verify either a financial account linked to your name or a mobile phone number registered in your name as part of the updated identity verification process by the IRS.
You will be needing a credit card (American Express, debit or corporate cards are not accepted), to student loan, home mortgage, home equity loan or line of credit or auto loan in your name in order to verify a financial account. Your identity will be verified by the Internal Revenue Service through this information. The IRS will not access your financial information and your card will not be charged or have to pay any kind of fees.
If you want to use your phone number to verify your identity, it is required that your phone must be in your name and must be capable of receiving text messages, as well as it must be based in the United States.
You can request that the IRS mail a verification code to you if you don’t have either of these items. You should expect to wait five to ten business days for the code to arrive according to the IRS.
You can log in with the same user ID and password if you already have an account for an online installment agreement or one of the other IRS tools such as “Get Transcript”. The additional information will be used to verify your account as it is still required.
The IRS wants to help keep your personal and tax information safe which is what these security measures are intended to. No transcript or installment agreement information will be sent to you by the IRS through e-mail and you won’t be directed to a website that is not the official IRS website.
The IRS will send you a special letter called a 5071C if they suspect that a tax return with your name on it is potentially the result of identity theft. The purpose of this letter is to notify you that the agency believes the tax return with your name and Social Security number may not be yours. To verify your identity and confirm whether or not the return is actually yours, the letter will ask you to take specific steps.
There are only two ways offered by the IRS to verify your identity. That is through online at the IRS Identity Verification Service website OR by phone at the toll-free number listed on your 5071C Letter.
Please note that only those who receive a 5071C Letter are allowed to use the verification system. The letters will be sent out through the U.S mail by the IRS, not through e-mail and they will not initiate verification requests by phone.
Since phone callers may experience delays due to the high volume of calls the IRS receives, they recommend that taxpayers use the online system. The phone number on your letter is not for any other tax issues but for verification purposes only.
Flynn Financial Group Inc