If you owe more taxes than you can afford to pay when you file your tax returns, don’t fail to take action. Make sure to file the tax returns on time. That way, you can avoid a penalty for filing late. Here are some tips if you are unable to pay all your taxes by the due date:
- File on time and pay as much as you can. You should file the tax return on time to avoid a late filing penalty. Pay as much as you can with your tax return. The more you can pay, the less interest and late payment penalty charges you will owe.
- Pay online with IRS Direct Pay. IRS Direct Pay is an electronic payment option available from the Internal Revenue Service. It allows you to schedule payments online from your checking or savings account with no additional fee and with an immediate payment confirmation. It is quicker than mailing in a check or money order. To make a payment or to find out about other payment options, visit IRS.gov/payments.
- Pay the rest of your tax as soon as you can. The interest and fees charged by a bank or credit card company may be less than the interest and penalties charged for late payment of tax. You may want to take a loan or use a credit card to pay the tax balance.
- Use the Online Payment Agreement tool. You don’t need to wait for the IRS to send you a bill to ask for an installment agreement. You can use the Online Payment Agreement tool on IRS.gov. You can even set up a direct debit installment agreement so you
- If you pay with a direct debit plan, you won’t have to write a check and mail it on time each month. That means avoiding more penalties for late payments. If you cannot use the IRS.gov tool, you can file Form 9465, Installment Agreement Request instead. You can view, download, and print the form on IRS.gov/forms anytime.
- DO NOT ignore a tax bill. If you get a bill, don’t ignore it. The Internal Revenue Service may take collection action if you ignore the bill. Contact the IRS right away to talk about your options. If you face a financial hardship, the IRS will work with you.
To find out more about the Internal Revenue Service collection process, check out the IRS website at: IRS.gov.
For more information, please Tiveron Law at 716-636-7600. Tiveron Law is located at 2410 North Forest Road in Amherst, New York 14068, with additional offices in Buffalo, Lancaster, and Lockport.