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Okay, it's the top of the hour I'm being told, that went quick, so let's get started folks.

Welcome to our IRS presentation: "Filing is the smart thing to do, even if you have a balance due." We're glad you're joining us today. My name is Philip Yamalis, and I am a Stakeholder, Senior Stakeholder Liaison at the Internal Revenue Service, I will be your moderator for today's webinar which is slated for approximately 1 hour. Before we begin ladies and gentlemen, if we have anyone in the audience with the media today, we ask that you please send an email message to the address provided on this slide; please include your contact information and of course the news publication that you're with. And then our media relations or our Stakeholder Liaison staff will assist you or answer any questions that you might have. I know that email address is kind of small on this slide, so let me read it to you: it's

Now In your email folks, please include your contact information and the news publication that you're with. And again, our media relations or our Stakeholder Liaison staff will assist you.

Now If you're having a technology issue during the webinar, this slide shows helpful tips and reminders.

We've posted a Technical Help document that you can download from the "Materials" button again, that's on the left side of your screen, it provides minimum system requirements for viewing this broadcast along with some of the best practices and quick solutions. I know some of you heard this before we started at the top of the hour but for those of you just joining us, if you completed and passed your system check and your still having problems, try one of the following solutions: The first option is to close the screen where you're viewing the webinar and then simply re-launch it. That solves it most of the time. The second option is to click the gear icon on your viewing screen that you can find in the top right-hand corner of the slide and photo boxes. You'll be given two choices, once you click on that gear icon. The first is to select "Flash" instead of "HLS" from the available media box and that should solve the issue. Now, if you do not have that gear icon and re-launching your web, viewing screen, doesn't fix your problem, then simply try using a different browser to launch and view the webinar today. You might also want to close all those extra windows and apps that you have open, um, on your viewing device and that usually fixes things as well, Okay. We hope, you that, that by this time you received the PDF version of the PowerPoint in that reminder email but if not, no worries, you can download it and have a copy of the IRS Resources document by clicking on the "Materials" button on the left side of your screen as shown on this slide. I do want to remind you that Closed Captioning is also available for today's presentation. So, if you're having trouble hearing the audio through your computer speakers, click the "CC" button on the left side of your screen. This feature will be available throughout this broadcast today Now ladies and gentlemen if you have a topic-specific question today, please submit it to us by clicking the "Ask Question" button. Enter your question in the text box and click "Submit". Now please, I really cannot emphasize this enough, I beg you DO not enter any sensitive or taxpayer specific information when you ask your question. Clean that out. Okay. We ask that you of course wait for your specific topic to be addressed today before submitting the question because of course the answer might be in the material we cover .Now during the presentation, we'll take a few breaks to share knowledge-based questions with you. At those times, a polling-style feature will pop up on your screen with a question and multiple-choice answer. Select the response that you believe is correct by clicking on the radio button next to your selection and then click submit. If you do not get the popup box for responding, please enter your response timely in the "Ask Question" feature, so that we can track your participation. All right let's move along with our session today. Let me introduce today's speakers. Our first speaker is Joseph McCarthy, he is a Senior Tax Specialist and my colleague in the Internal Revenue Service. He is also in the Stakeholder Liaison Division in Hartford, Connecticut; Our second speaker is also my colleague, Jennifer Henrie-Brown. She's a Tax Specialist in the same division and she's in our Oakland, California office with that nicer weather. So, both of our presenters today work with tax professionals and small business owners in their respective areas providing outreach and education and they're very, very good at identifying ways the agency can be more responsive to customers' needs. So, with that small introduction let me go ahead and turn it over to you Joe to begin our presentation today. JOSEPH MCCARTHY: Well, thanks, Phil. The Internal Revenue Service recognizes that, at times, unforeseen events can cause you to owe taxes when you file your tax return. If this happens, the IRS can help you to meet that tax obligation. There's no need to panic. Just submit your tax return on time and pay as much as you can by the due date of the tax return. The more you can pay before the due date of the tax return, the less penalties and interest you'll owe. Jennifer would you like to go over the objectives. JENNIFER HENRIE-BROWN: Sure Joe. We have a number of topics we're going to discuss today, and we hope by the end of this webinar you'll learn: Why you want to file your tax return and pay your taxes timely; What to do when you owe taxes, but can't pay them by the due date and How to-How to apply for more time to file your tax return if needed. And also, about the different payment options available to you to pay your taxes, and also how to avoid a large tax bill when you file your tax return in the future. Joe-JOSEPH MCCARTHY: But, the most important thing you want to do is to file your tax return on time. That means you want to file your tax return on or before the due date of the tax return. I can't tell you how important this is. Even if you can't pay your taxes; file your tax return on time. The second most important thing you can do is that if you owe taxes when you file your tax return, pay as much as you can toward what you owe by the due date of the tax return. PHILIP YAMALIS: Well Joe, why is it so important to file your tax return on time and of course pay as much as you can towards the amount that you owe? JOSEPH MCCARTHY: Well Phil, as I said before, the main reason you want to file your tax return on time and pay your taxes on time is to avoid penalties and interest. Now, let me show you want I mean. There are two types of penalties that you can be subject to; the late filing penalty and the late payment penalty. On this slide we will be discussing the late payment penalty, sorry, the late filing penalty. The late filing penalty is 5% a month, for up to 5 months, capping at 25%. The late filing penalty is assessed on the total amount of unpaid tax on the due date of the tax return. There's also a minimum penalty for late filing. If you file your 2018 tax return more than 60 days late, the minimum penalty is usually $215. If you owe less than $215, it's 100 percent of the unpaid tax. Now if you can't file your tax return by the due date of the tax return, you can file a tax return extension. Then if you file your tax return by the tax return extension due date, you'll avoid the late filing penalty. We'll talk more about the filing, ah, filing tax return extensions later in the presentation. Jennifer. PHILIP YAMALIS: Jennifer, we're going to ask that you move the microphone a little bit closer to you so that we can hear you JENNIFER HENRIE-BROWN: Ah! There we go. Sorry folks, I was on mute talking away. Thank you. [Laughter] Okay. Well, the other penalty is the failure-to-pay penalty which is initially one-half of one percent of the tax not paid by the due date, typically April 15. And it is charged for each month, or part of a month following the payment due date until the tax is paid. Now the penalty rate is actually cut in half while you have an approved payment agreement with the IRS. In that case it's one-fourth of one percent, that's 0.25% per month, the penalty increases to 1% of the unpaid tax for any tax that is not paid within 10 days after we issue a Notice of Intent to Levy; however, the total late payment penalty cannot exceed 25%. Now if both the late filing and the late payment penalties apply, the maximum amount charged for the, first two, for the two penalties for the first 5 months is 5 percent per month. Now, the two penalties run concurrently for the first five months, which again, is 5% a month. But the combined maximum penalty for both late filing and late payment penalties is 47.5%, that's 22.5% late filing penalty and 25% late payment penalty. Again, both the late filing penalty and late payment penalty are assessed against your outstanding federal tax liability. So, penalties can add up very quickly.

JOSEPH MCCARTHY: But like the TV commercial says, that's not all! The kicker is, that interest is assessed not just on the unpaid tax liability, interest is also assessed on both the late filing and late payment penalties as well. And interest is compounded daily. Interest is kind of like being in a taxi cab. The meter is always running. Phil, I think it's time for our first polling question, so I think I'll turn it over to you. PHILIP YAMALIS: Okay, Joe I think you're right. Thank you. Here's our first polling question: Ladies and Gentlemen, the question is: Why are filing your tax return on time and paying your taxes on time so important? Okay, is the correct answer, A - To avoid being assessed late filing penalties. B - To avoid being assessed late payment penalties. C - To avoid being assessed interest or D - All of the above. Please click on the radio button that you believe is the correct response. Okay, we'll give you just a few more seconds to answer that one. All right I don't think it's too difficult. So, we will stop the polling now. And we'll share the correct response on the next slide. Okay, there it is, the correct response is "D - all of the above." Let's see the results of how you responded. I see that 97% of you responded correctly. Thanks for those responses. With that, Joe, let me turn it over to you. Can you explain what are your e-filing options when filing your tax return?

JOSEPH MCCARTHY: Sure. Let's take a look at some of your electronic filing options. This list, this slide includes four electronic filing options for individual taxpayers. You can use IRS Free File if your adjusted gross income is $66,000 or less. Or you can use the IRS Volunteer Income Tax Assistance program, also known as VITA, and the Tax Counseling for the Elderly, also known as TCE. These programs offer free tax help and e-filing services for taxpayers who qualify. The VITA program offers free tax help to people who generally make less than $55,000. To locate the nearest VITA or TCE site near you, use the VITA Locator Tool on the IRS website. You could also use a commercial tax preparation software to prepare and file your tax returns. Or you can use an Authorized e-file Provider. Just go to "Find a Tax Pro Now" webpage on the IRS website to find an Authorized e-file Provider using the Authorized e-file Provider locator service "For Tax Professionals" database. Phil you're on. PHILIP YAMALIS: Okay Joe, I am. Okay, so you filed your tax return, but you really cannot fully pay, Joe, your taxes, you can't fully pay your taxes by the due date of your tax return. How can you pay off the remainder of the tax that you owe? JOSEPH MCCARTHY: That is a good question, Phil. The IRS offers various electronic payment options to make a full or partial payment with, with your tax return. On this slide we're going to talk about the Electronic Funds Withdrawal. If you use commercial tax software, a paid preparer, or Free File to electronically file your tax return, you can pay your taxes using Electronic Funds Withdrawal. Just so you know, you can file your tax return on one day and pay your taxes on a separate day. For example, you can file your tax return in mid-March but have the funds electronically withdrawn from your bank account to pay your taxes on April 15th. So, the filing date and the payment date don't have to be on the same day. If you or your client want to pay the old fashion way, you can mail a check or money order and if you do so you want to make the check or money order payable to the U.S. Treasury. You want to send in the payment with a voucher, using Form, Form W, sorry, Form 1040V. Make sure you check the name, I'm sorry, make sure the check or money order includes: your name and address, your daytime phone number, your social security number or employer identification number, the tax year, and the type of tax return like Form-1040. You should mail your payment to the address listed on the form's instructions. Now personally, I'd recommend paying your taxes using an electronic funds withdrawal because it is a lot easier, but you can pay by check or money order. PHILIP YAMALIS: Okay. So, Jennifer what can you do if you can't file your tax return on time? JENNIFER HENRIE-BROWN: Good question Phil. Well, if it turns out you can't file your tax return on time, you can request an extension of time to file your tax return. But note, an extension of time to file is not an extension of time to pay. Taxes are still due by the filing deadline.

And there are several ways to get a tax-filing extension. The easiest and fastest way is through IRS Free File. And you can use any of the nine Free File software companies listed on this web page to prepare and e-file an extension for free. But this applies only for filing an extension. If you want to use Free File software to file your return, your adjusted gross income cannot exceed $66,000. Alternatively, you can get an automatic six-month extension if you make a payment with IRS Direct Pay, the Electronic Federal Tax Payment System or by debit or credit card and select Form 4868, as the payment type. With this option, there's no need to file the Form 4868, which is entitled, Application for Automatic Extension of Time to File U.S.

Individual Income Tax Return, and you will receive a confirmation number for your records. But we'll cover EFTPS and IRS Direct Pay and debit and credit card payments in a few minutes.

JOSEPH MCCARTHY: Jennifer, do you want to talk about Form 4868? JENNIFER HENRIE-BROWN: Oh, sure thanks Joe. You can also get an automatic 6-month extension to file your tax return the, the "old fashion way" if you complete and file a Form 4868 with is shown on the slide. Form 4868 is available on our website. And filing this form automatically gives you an additional 6-months to file your tax return. The tax return will be considered to be timely filed, if you file it within the 6-month extension period which will be by October 15, 2019. If you get a tax-filing extension and pay most of what you owe by the original deadline, you probably won't owe a late-payment penalty. And to qualify, you request a 2018 extension by April 15, 2019 and pay at least 90 percent of your total tax liability by that date. Then, file your 2018 tax return by October 15, 2019 and pay the rest of what you owe. Interest will still be due on any payment received after April 15, 2019. Oh, and I should note there's been a recent update regarding the percentage threshold to avoid the penalty for those whose tax withholding and estimated tax payments fell short in 2018. The IRS is lowering the usual percentage threshold of 90 percent of your total tax liability, to 80 percent to avoid the penalty. Also, you won't have to pay the late-filing or late-payment penalty if you can show reasonable cause for not filing or paying on time. And you may qualify for relief from penalties if you made an effort to comply with the requirements of the law, but, due to circumstances beyond your control, you were unable to meet your tax obligation. PHILIP YAMALIS: Excellent Jennifer. Yeah, I know we talked about that recent update regarding the percentage threshold changing, ah, during our "In Case you Missed It", ah, segment earlier before the top of the hour. So, thanks for reminding our audience about that today. Well guys look, you've covered such a, a good bit of information so far so I think it might be a good time for another polling question. What do you think? JENNIFER HENRIE-BROWN: Sounds good to me, Phil, let's do it. PHILIP YAMALIS: Good. All right. Our second polling question is a true or false question. An extension of time to file your tax return is also an extension of time to pay your taxes. Is this statement true A, or is it B, false? Again, click on the radio button that you believe is the correct response. Pretty clear cut. No need to repeat the question, but I can almost hear the Jeopardy song going in the back of my head. We'll give you a few more seconds to respond. All right since there's not that many answers we'll stop the polling now. And we'll share the correct response on the next slide. An extension of the time to file your tax return is also an extension of time to pay your taxes.

The correct response is of course False. And let's see, 95% of you responded correctly so let's go ahead and move on. Jennifer, let me ask if you can share some information on payment options.

JENNIFER HENRIE-BROWN: Of course. Thank you, Philip. Well there are many, many options for paying taxes owed. And you can go to the website and enter into the search box "tax payment options" for the information on all the various payment options. Most people actually qualify to set up a payment agreement with the IRS. So, let's go ahead and move on to the next slide so we can talk about the Online Payment Agreement application. So, payment plans are available to taxpayers who can't pay their taxes when due but can do so through a short-term payment plan which is paying in 120 days or less or by making monthly installment payments in a long-term payment plan also known as an installment agreement. And if you are a qualified taxpayer or authorized representative. You can apply for a payment plan online to pay off your balance over time. And the Online Payment Agreement application provides a very easy way to go ahead and set-up an installment agreement. So, let's see, it's, it's, you can either do a short-term payment plan or a long-term installment agreement payment plan using the online payment agreement. But there is absolutely no user fee for setting up a short-term payment plan for 120 days or less.

You can use the online payment agreement application on to request a payment plan, a long-term payment plan of more than 120 days if you have, just have $50,000 or less in combined tax penalties and interest is owed. Again, that's $50,000 or less, okay. And though a user fee applies for setting up an installment agreement, late payment penalties are actually cut in half while the agreement is in effect. If more than $50,000 is due, you may still qualify for an installment agreement, but you will need to complete and mail a Form 9465, Installment Agreement Request and Form 433-F as in Frank, which is the Collection Information Statement. Or you can call the 800-829-1040 number or the phone number on your bill or notice. And setting up a payment plan online is so much faster than sending in a written request or calling our customer service phone line. Also, lower user fees apply to long term payment plans established online.

The fees are lower still for those who elect to make their payments by direct debit. PHILIP YAMALIS: Okay. Online payment agreement or OPA. [Laughter] Tell me, Jennifer, which individual taxpayers can use the online payment agreement application. JENNIFER HENRIE-BROWN: Well the basic criteria for individuals are listed on this slide. And over 90 percent of the individual taxpayers currently on a long-term installment agreement would meet the basic criteria. So, let's clarify what's on this slide: A balance due of $50,000 or less means the aggregate assessed balance on all tax returns. And the aggregate assessed balance is the sum of all assessed tax, penalty and interest. And you can find the aggregate assessed balance on the taxpayer's billing notice. Also, note the last two bullets on this slide. We will not allow an installment payment agreement unless the taxpayer has filed all their required returns and we know what they owe. Also, we want at least the total aggregate assessed balance due to be paid in 72 monthly installments or less, this generally is the minimum acceptable monthly payment is one-seventy-second of their aggregate assessed balance. Now, for more information, and access to the Online Payment Agreement application you can go to the website and enter "Online Payment Agreement" in the search box. PHILIP YAMALIS: OPA! [Laughter] JENNIFER HENRIE-BROWN: Yes, a good way to remember it. OPA! [Laughter] I think it is time for our next polling question. PHILIP YAMALIS: Jennifer, I think you're right. It is. It is. So, here's our next polling question ladies and gentlemen. What is the maximum length of an online installment agreement? Okay, remember what Jennifer just shared with us, what is the maximum length of an online installment agreement? Is it A - 72 months. B - 48 months C - 24 months D - 12 months.

Simply click the radio button that you believe is the correct response. Let me give you just a few more seconds to respond. All right. Let's go ahead and stop the polling now and we'll share the correct response on the next slide. And the correct answer is "A", 72 months. 72 months. And let's see the results of how you responded. My producer is telling me that 93% of you responded correctly. Great! Let's move on. Thanks for paying attention ladies and gentlemen. Joe, I'm going to ask you to share some information on that thing called EFTPS. JOSEPH MCCARTHY: Sure Phil. One way to pay your taxes or estimated taxes is by using the Electronic Federal Tax Payment System also known as EFTPS. To use the Electronic Federal Tax Payment System, log on to and enroll. Now you must enroll or register, in advance, in order to use EFTPS.

Now once you're enrolled, you can pay virtually any type of federal tax. The Electronic Federal Tax Payment System is far and away the most popular method used by taxpayers to make payments especially estimated tax payments. There are many reasons for this. EFTPS offers you the convenience and flexibility of making your estimated tax payments via the Internet or phone 24 hours a day, 7 days a week. EFTPS is secure, free and easy to use. On top of that payments made by using EFTPS can be made as frequently as once a week. This is especially helpful to people who are self-employed because self-employed individuals don't have to wait to the end of the quarter to make estimated tax payments. Scheduling smaller, more frequent payments is a great way of managing cash flow and can eliminate the problem of self-employed individuals not having enough money at the end of the quarter to pay their estimated taxes. EFTPS is also great for retired individuals. Using EFTPS you can schedule estimated tax payments up to 365 days in advance. So, self-employed and retired individuals can schedule all their estimated tax payments for the year in one sitting. You can just set it and forget it. One the other great features of EFTPS is that taxpayers receive electronic confirmation for their estimated payments that they make using EFTPS. PHILIP YAMALIS: You know Joe that's all sounds great but what about checking payment history? I am, I'm, you know, I'm good at sometimes forgetting to mark those, those payments down. So, checking payment history -- How far back can someone go to view their payment history using EFTPS? JOSEPH MCCARTHY: That's an excellent question, Phil. Taxpayers may check the status and history of any tax payment they've made using EFTPS, and EFTPS only, in the last sixteen months at the EFTPS website. JOSEPH MCCARTHY: Again, I want to remind you, PHILIP YAMALIS: That's 16 months.

JOSEPH MCCARTHY: 16 months. PHILIP YAMALIS: Okay. JOSEPH MCCARTHY: Again, I want to remind you that EFTPS does require pre-registration. For more information on EFTPS or to enroll in EFTPS, visit the EFTPS website at As I mentioned previously, EFTPS can be used to obtain an automatic 6-month extension to file your tax return. But remember this is an extension to file your tax return, not to, not an extension to pay your taxes. With that, Phil, I think it is time for our fourth and last polling question. PHILIP YAMALIS: Joe, I think you're right and boy, I think we've said this so many times. It's an extension to file, not an extension to pay. So, if we get anything out of this, that is one thing to remember. All right let's go on with the fourth and final polling question and it's based on what Joe just talked about. Here it is. The Electronic Federal Tax Payment System or EFTPS, for individuals is: A - Free to use, B - Secure, C - Enables payments to be made 24/7, D - Enables payments to be scheduled up to 365 days in advance, E - All of the above. Folks, please click on the radio button that you believe is the correct response. Of course, we'll give you a few more seconds to respond. There's quite a few answers there. PHILIP YAMALIS: There is that Jeopardy song again. Okay. Let's go ahead and stop the polling now, folks. And we'll share the correct response on the next slide. There it is. And the correct response for EFTPS is "E, All of the above". Let's see the results. . Yeah, I had a feeling it be such. 99% of our respondents responded correctly. So, thank you for paying attention. Let's move on then. Jennifer, I'm going to ask you share some information then on IRS Direct Pay. JENNIFER HENRIE-BROWN: Thanks, Philip. I'd be happy to. You can also use IRS Direct Pay to pay your taxes directly from your checking or savings account. It's free and you receive instant confirmation of payment. If you need to make a payment and you are not already enrolled in EFTPS, you may be able to use IRS Direct Pay. Because IRS Direct Pay requires NO pre-registration. You can use IRS Direct Pay to pay your Form 1040 series, estimated taxes, your individual tax bill, extensions, and an installment agreement. But Direct Pay is only available to make payments on your individual taxes. Other benefits to using IRS Direct Pay include: It's a secure way to make federal tax payments electronically. As I mentioned it is free and it is easy. It's very easy to use. With Direct Pay, you can make a same day payment and you can make even daily payments using Direct Pay. And you receive electronic payment confirmations. You can use Direct Pay 24 hours a day 7 days a week and be finished in the time it takes to write a check and address an envelope.

PHILIP YAMALIS: That is right, Jennifer. Well, if that's the case, um, similar to EFTPS, can you make advanced payments using IRS Direct? JENNIFER HENRIE-BROWN: You can make advanced payments using IRS Direct Pay up to 30 days in advance. PHILIP YAMALIS: Okay. JENNIFER HENRIE-BROWN: But remember with EFTPS you've got 365 days in advance, a whole year so that's a big advantage of the EFTPS over IRS direct pay. And for more information, PHILIP YAMALIS: How do you do that?

JENNIFER HENRIE-BROWN: Well, you, if you look at the slide, at the very bottom of the webpage, there's a "Make a Payment" button, And, you just click on that to get started. And to get more information about payment options, you just go to our website and there's a "Pay" navigation tab. Click on that "Pay" navigation tab on the homepage. And it will take you and give you all the information about the various payment options. PHILIP YAMALIS: Excellent. Joe let's turn it over to you. JOSEPH MCCARTHY: Okay. If you prefer to pay by credit or debit card, the IRS has that option too. You can pay your taxes using your debit or credit card via the internet, phone, or mobile device using the IRS2Go app. This option is available whether you e-file, paper file or if you're responding to a bill or notice. It's safe and secure. However, you should know that debit and credit cards service providers do charge a fee. And fees vary depending on the provider you select. There is a link on the "Pay by Card" web page on the IRS website that discusses the fees charged in greater detail. PHILIP YAMALIS: Excellent. Yeah. I like that IRS2Go app, especially on checking the refund. I haven't tried it for payments yet.

I haven't had to. But all right. Let me ask you this Joe, Let's say you filed your tax return, you paid as much tax as you could when you filed the tax return, but you still owe money, um, so you got yourself into an on-line payment agreement, that OPA, or you used EFTPS or Direct Pay to pay off the remainder of the tax you owe. That's great, but how do you prevent yourself from owing taxes next year when you go to file your tax return? We don't want this to go over and over again. Tell you what, Jennifer, can you help us with this question? JENNIFER HENRIE-BROWN: Yes, I can, Phil, I just have to keep hitting that mute button. Sorry about that. [Laughter] Okay. So federal taxes operate on a pay-as-you-go basis. Taxpayers who pay enough tax throughout the year can avoid a large tax bill and subsequent payment penalties when they file their tax return. And there are basically two ways to pay tax as you go. You can use either of these, or a combination of the two: One is through tax withholding; from your pay, your pension or certain government payments, such as social security or two, by making estimated tax quarterly payments during the year. And estimated tax is used to pay tax on income that isn't subject to withholding. And this will include income from self-employment, interest, dividends, rent, gains from the sale of assets, or prizes and awards. Estimated tax is used to pay not only your income tax, but other taxes such as self-employment tax and the alternative minimum tax. And you may have to pay estimated tax if the amount of income tax being withheld from your salary, your pension, or other income isn't enough. In addition, if you, if you do not elect voluntary to withhold, you may need to make estimated tax payments on other taxable income, such as your unemployment compensation and the taxable part, taxable part of your social security benefits. So, but Joe, can you share some more information and go over withholding? JOSEPH MCCARTHY: Sure Jennifer. Well if you are a wage earner you might want to check your withholding to make sure you are having enough taxes withheld to meet your future tax obligations. Now there were some far-reaching changes, tax law changes, that began in 2018, in addition there were changes to withholding tables, as a result some people may have received a smaller refund this year than in past years or perhaps even owed tax when previously received a refund. If you are one of those people, you might want to adjust the amount of your withholding as soon as possible to prevent this from happening next year when you file your tax return. Jennifer? JENNIFER HENRIE-BROWN: Sorry Joe. I keep putting that mute button. I'm going to have to get rid of that thing. So, the IRS urges all employees to perform a "paycheck checkup" soon to ensure they have the correct amount of federal income withheld from their pay. And checking and adjusting your withholding now can help prevent an unexpected tax bill and penalties next year at tax time. The IRS Withholding Calculator and Publication 505, which is entitled, Tax Withholding and Estimated Tax, can help determine if you need to adjust your withholding or make estimated or additional tax payments now. And you can actually find the IRS Withholding Calculator by keying in "withholding" in the search box on the website. And you can also find Publication 505 on the IRS website. You just key-in "Pub, P-u-b, 505" in the search box. Joe. PHILIP YAMALIS: What was the first word that you typed in to find the withholding calculator? Withholding?

JENNIFER HENRIE-BROWN: You just. Yeah. You just key in, "Withholding" and it will take you right to a page that has a link to the IRS Withholding Calculator. JOSEPH MCCARTHY: There's even a link from the IRS homepage, Phil. PHILIP YAMALIS: That's correct. Thank you, so much.

JENNIFER HENRIE-BROWN: So, Joe, do you want to share some information on the IRS Withholding Calculator? JOSEPH MCCARTHY: Sure Jennifer. The IRS Withholding Calculator is an online tool that helps you determine the correct number of withholding allowances to enter into your Form W-4, and that's the Employee's Withholding Allowance Certificate and any additional amount, if any, to withhold from each paycheck. But primarily designed for employees who receive wages, the Withholding Calculator can also be helpful to some recipients of pension and annuity income. To use the IRS Withholding Calculator most effectively, be sure to have on hand a copy of your latest tax return, along with your most recent paystub. After inputting all the required information, the Withholding Calculator will recommend the number of allowances you should claim on your W-4. If the Withholding Calculator suggests a change, you should fill out a new Form W-4 which is an Employee's Withholding Allowance Certificate and give it to your employer. Remember don't send the W-4 to the IRS, give it to your employer. The Withholding Calculator is pretty easy to use, and the process doesn't really take all that long, but please make sure to read and follow the Withholding Calculator instructions. JENNIFER HENRIE-BROWN: Well should everyone use the Withholding Calculator to check to see if their withholding is appropriate for their personal situation? JOSEPH MCCARTHY: No, Jennifer unfortunately not. Taxpayers who expect to receive long term capital gains, qualified dividends or taxpayers who owe self-employment tax, the alternative minimum tax or tax on unearned income of minors should use the instructions in Publication 505, that's the withholding and estimated tax guide to check to see whether they should change their withholding or make estimated tax payments. If a taxpayer has self-employment income or owes self-employment tax they should use the worksheets in Publication 505, again that's the "Tax Withholding and Estimated Tax" guide to determine if they should pay estimated tax. JENNIFER HENRIE-BROWN: Thanks, Joe for emphasizing that very important point. Well, as we've previously pointed out, you may be able to adjust your withholding to cover your pay-as-you-go federal tax requirement. However, there are some taxpayers that may need to make estimated tax payments to meet their pay-as-they-you-go requirement. So, who must make estimated tax payments? Well most often, self-employed people, including some persons involved in the sharing or "gig" economy, for example, ride share drivers, may need to pay estimated tax. And similarly, investors, retirees and others, a substantial portion of whose income is not subject to withholding, often need to make estimated tax payments as well. Now, besides self-employment income, other income generally not subject to withholding would include interest and dividends, capital gains, rental income, prizes. And you may also want to make estimated tax payments to avoid penalties if the amount of income being withheld from your salary, or your pension or other income is not enough to cover your income tax for the year. So, to get more information, visit our IRS website. Just go to to learn more about withholding and to determine if estimated tax payments are needed. PHILIP YAMALIS: Jennifer can you repeat that website again? JENNIFER HENRIE-BROWN: Oh, sure it's PHILIP YAMALIS: How creative! [Laughter] JENNIFER HENRIE-BROWN: And this slide, the next slide shows some of the resources available on our website on today's topic. And as you can see, there is a wealth of information available on our website; including information on: payment options, apply online for a payment plan and estimated taxes, pay as you go, so you won't owe.

Remember you can download a copy of this IRS Resources document by clicking on the "Materials" button on the left side of your screen. And with that, I'll turn it over to Phillip. PHILIP YAMALIS: Thank you, Jennifer. Thank you. Okay. That means that after this fantastic presentation by both you, Jennifer, and Joe, um, we are going to go ahead and turn it over to the Q&;A session here. Before we begin, our question and answer session, I do want to mention that we might not have time to answer all the question submitted today during today's webinar however let me assure you that we will answer as many as time allows. Also, I want to remind you that if you're participating to earn a certificate and related continuing education credit, that you will qualify by participating for at least 50 minutes, that's 5-0 minutes from the official start time of this webcast that means the first 5 minutes, 7 minutes of "chatting" we engaged in before the top of the hour that won't count towards the 50 minutes, sorry about that. So as long as you meet the 5-0, 50-minute threshold, you're not required to stay on for the question and answer portion. But, of course, we certainly hope you will. Because we've got quite a few questions that I think, um, would be beneficial to hear from Joe and Jennifer. So, Joe and Jennifer, I hope you're ready. We have received quite a few questions. So, let's get started right away so that we can get to as many of these questions as possible. Okay? Let's go ahead and start with Jennifer. Got a couple of questions here that I am going to throw at you, um, if you are ready. [laughter] JENNIFER HENRIE-BROWN: Yes. I am off mute. [Laughter] PHILIP YAMALIS: There you go. [laughter] All right. What are the user fees? Um, one person writes in here what are the user fees for setting up an individual payment plan with the IRS? I know you talked about that a little bit, but I'm not sure you heard anything about user fees. JENNIFER HENRIE-BROWN: Okay well that's a good question and remember for short-term payment plans, okay, those are 120 days or less, there is no user set up fee, okay? But, PHILIP YAMALIS: That's right, right. JENNIFER HENRIE-BROWN: penalties and interest keep accruing until the balance is paid in full. Now for a long-term installment agreement payment plan, which is paying more than 120 days, it depends on the payment method and also, whether you use the online payment agreement application. For example, if you opt to have your payments made through direct debit, okay, which is having the payments automatically made through your checking or savings account, or I should say your checking account, then if you use the online payment agreement application to set up a direct debit, the user fee is only $31. Okay. But, if you set up that same direct debit installment agreement through the Form 9465 by sending in the installment agreement request form, that user fee jumps up to $107. PHILIP YAMALIS: Ouch! JENNIFER HENRIE-BROWN: Big difference so you want to choose the online payment agreement, right? Now if your payment method is instead, let's say you don't want to do a direct debit, okay, from your checking account, but instead you want to send in a check or money order or do an electronic payment option using your credit card or IRS Direct Pay or what have you, then if you use the online payment agreement application to set up that installment agreement, the user fee is $149. If you don't use the online payment application set up that same agreement, which, again, is not a direct debit from your checking account, it's $225. So, what we have learned here is if you can, you want to use the Online Payment Agreement and opt for direct debit. That's the easiest and also the least expensive as far as user fees. PHILIP YAMALIS: That is what I am hearing. We've got to say OPA more often.

So, um, if you can, if you can access it and do it online, you're going to save some money on user fees, that's what I'm hearing you say. JENNIFER HENRIE-BROWN: Right. And you, you, if you do direct debit and it is just set up and then it automatically happens, and you don't have to worry about being late. PHILIP YAMALIS: Excellent. Yeah. I know we talked about this during the webinar, um, we, we talked about EFTPS and we talked about IRS Direct Pay. Tell me some of the differences between these two fantastic online payment options. JENNIFER HENRIE-BROWN: We'll you're right. They're both fantastic payment options, but there are differences. So, there's actually several differences. Um, remember though, you can use EFTPS to pay any kind of federal tax, okay, including individual and business taxes such as estimated taxes, excise taxes, payroll taxes, and even corporate taxes with EFTPS, right. IRS Direct Pay is only available to make payments on your individual taxes. Such as your, your 1040 Form, right, and your extensions, your individual tax bill and installment agreement. Also, a big thing is to have to register to use EFTPS and when I looked on the website, um, they note that new enrollment for EFTPS can take up to five business days, okay, to process. So, with, with IRS Direct Pay you don't have to pre-register to use IRS Direct Pay. PHILIP YAMALIS: Right. I think that's a big difference, right there. JENNIFER HENRIE-BROWN: That's a big one if you have to make the payment now. Right. But what's great about EFTPS and you pointed this out, Phil is both individuals and businesses can schedule payments up to 365 days in advance with EFTPS. I mean that's great. Joe pointed out, you know just go ahead and schedule all four quarterly estimated tax payments at one sitting and then be done with it. That's fabulous. PHILIP YAMALIS: Very good. Thanks. JENNIFER HENRIE-BROWN: But remember with IRS Direct Pay, you can only schedule a payment up to 30 days in advance. Okay. PHILIP YAMALIS: Yeah. Very good. JENNIFER HENRIE-BROWN: And with EFTPS online payment. PHILIP YAMALIS: All year. JENNIFER HENRIE-BROWN: You. Right. With EFTPS, when you do an online payment, you, you need to schedule it by I believe 8:00 p.m. Eastern Time the day before the payment is due, with IRS Direct Pay, you can make a same day payments, okay, same day payments, which is great. PHILIP YAMALIS: So, the bottom line is here, folks, pay attention to those differences as you're moving along and, um, let's, let's take it to the next step. Let me turn it over to you, Joe. Um, filing, when you e-file your return, how, how do you file on one date and pay on another? There, there needs to be some clarification on that because we had a couple of questions on that. JOSEPH MCCARTHY: Sure Phil. Basically, when you're using a tax software program, the tax software program is going to be asking you those things so I can't give you, you know, a step-by-step instruction on how to do that because tax software varies from, um, supplier to supplier, but in each case, they will offer you that option if you want to do electronic fund withdrawal, to pick the date you actually want the amount to come out of your checking or savings account and be transmitted to the U.S. Treasury. PHILIP YAMALIS: Very, very good. So, it depends on software and your tax professional if you're an individual is going to know that in most of our tax professionals know how their software works so that's great. So, Joe, let me keep this with you. If someone owes money from 2017 and he's going to have a balance due this year, can you consolidate both balance dues automatically or does it have to have another installment? PHILIP YAMALIS: That's a common question that I hear a lot. Let me turn it over to you. JOSEPH MCCARTHY: Yes, unfortunately, you going to have to create a new installment agreement. Um, once you, if you have an installment agreement in effect and another tax liability comes up, that installment agreement, automatically its terminated and you have to redo, or you have to apply for a new one. The only way possibly around that, it depends on who you're dealing with, if you are dealing with a Collections Officer or if you just need an online payment agreement, An online payment agreement you'll probably have to create a new one if you're dealing with a Collections Officer, you might be able to modify one that you already have in place. But, generally speaking, it is going to terminate and you're going to have to apply for a new one. PHILIP YAMALIS: Very good. Let me ask you, one more. If you're getting a refund, you know you're getting a refund this year, do you still get a late filing penalty if you file late? JOSEPH MCCARTHY: No, ah, you won't. The reason being is a late filing penalty is based on the amount of tax that you owe. And if you don't owe any taxes and get a refund, there would be no penalty. PHILIP YAMALIS: Okay. However, what if there is an assessment later and you file that late and you do owe? JOSEPH MCCARTHY: Then it gets to be a little problematic. So, PHILIP YAMALIS: Yeah- JOSEPH MCCARTHY: It's always safe to make sure you file on time or get an extension and that way you have yourself covered. PHILIP YAMALIS: Covered both ways, sure.

Wow, Joe and Jennifer, thank you, so much. I'm getting the wrap up here from my producer. So, um, I can't thank you enough for such an excellent job, um, on, on, reminding some of us that know the stuff, the importance of it and we really appreciate your efforts here today, um, but before we close this session, I am going to ask you each to, to share with us what are some of the most important points that we want our audience to remember from today's web conference. Joe, why don't you go first. JOSEPH MCCARTHY: Sure Phil, the most important thing I want to emphasize is to file your tax return on time even if you can't fully pay your taxes. File your tax return on time and then pay as much as you can before the due date of the return. By filing your tax return and paying your taxes on time, you're going to avoid a late filing penalty and late payment penalties as well as interest charges. If you can't file your tax returns on time, you can apply for an automatic six-month extension to file your tax return. However, an extension to file is not an extension to pay your taxes. So, it's very important to remember that.

Jennifer, I'm going to hand it over to you. JENNIFER HENRIE-BROWN: Thanks, Joe. And remember there are several payment options available for paying your taxes and you should explore all of your payment options at our IRS website. Again, just click the "Pay" navigational tab or visit and you can make payments using EFTPS, IRS Direct Pay, check, debit, or credit card. And if you can't pay right away, the IRS will work with you to resolve your tax debt.

Remember, most people qualify to set up a payment plan using the Online Payment Agreement tool.

And in order to help prevent owing tax, or a large tax bill next year, use the IRS Withholding Calculator to find out how much federal income tax should be withheld from your pay. And you can use the worksheets in IRS Publication 505 to calculate any estimated tax payments you may be required to make. And Phil, back to you. PHILIP YAMALIS: Thank you, so much again, Jennifer and Joe. For those of you in the audience that have attended today for at least 50 minutes after the official start time at the top of the hour of the webinar, you'll receive a certificate of completion that you can use with your credentialing organization for possible CE credit. If you are eligible for continuing education from the IRS and you've registered with your valid PTIN, your credit will be posted to that PTIN account. Now if you're eligible for continuing education from that California Tax Education Council, your credit will be posted to your CTEC account, as well. If you qualify you've not received your certificate and/or credit let's say by May 2nd, please, e-mail us at the address shown on this slide, CL.SL.Web.Conferenece.Team (I know that's a long one) Now if you want to know who your local Stakeholder Liaison is, um, you can send us an e-mail using this address as well on the slide and we'll send you that information. Or you can't find a contact for your state by visiting, you can find a contact for your state by visiting and using the keyword search, "Stakeholder Liaison" Make sure you spell liaison correctly. Ladies and gentlemen, as part of the Service's efforts to provide you with timely topics and interesting speakers, we'd appreciate if you'd take just a few minutes to complete a short evaluation before you exit. Um, simply, oh, If you have any requests for future webinar topics or pertinent information you'd like to see in an IRS Fact Sheet, Tax Tip, or FAQ on, please include your suggestions in the Comments section of the Survey or in the "Ask Question" feature on your viewing screen. We will capture those. Click the "Survey" button on the left side of your screen to begin. And again, if it doesn't come up, don't forget to hit that pop-up blocker so it does. We hope that you'll join us for future webinars as they become available; the great part is that they are informative and they're free. You know what it is like, if they're free it's me. So, um, click on use keyword "webinars" select the "Webinars for Tax Practitioners" or "Webinars for Small Business". Our next webinar is on May 16 at 2:00 pm our topic will be Bankruptcy from an IRS Perspective. So, I hope to see you there. Please take a look to your local Stakeholder Liaison for information about the policies, practices and procedures that the IRS uses to ensure compliance with the tax laws. Um, it has been a pleasure to be with you here today, folks. Thank you and on behalf of the Internal Revenue Service, I'd like to thank you for attending today's webinar. It's important for us to maintain strong partnerships with the tax professional community as well as industry organizations and other federal, state, and local government organizations. You make our job a lot easier by sharing information that allows for proper tax reporting. Thanks again for your time and attendance. Much success in your business or practice. Feel free to exit the webinar at this time.