The end of tax filing extensions is quickly approaching. What do you do if you can't pay the amounts you owe? You should still file your return by the due date and pay as much as you can. There are, however, additional steps that might help.
Credit Cards
You can charge your taxes on your American Express, MasterCard, Visa or Discover cards. If you go in this direction, you can use either of the following two sources:
Official Payments Corporation
1-800-2PAY-TAX (1-800-272-9829)
www.officialpayments.com
Link2Gov Corporation
1-888-PAY-1040 (1-888-729-1040)
www.pay1040.com
If a credit card is out of the question, you may be able to pay any remaining balance over time in monthly installments through an installment agreement. If you are completely wiped out and the future looks grim, you may also want to consider getting the tax amount reduced through the Offer in Compromise program.
To apply for an installment payment plan, fill out and attach Form 9465 to the front of your tax return. The IRS has streamlined the approval process if your total taxes (not counting interest, penalties or other additions) do not exceed $25,000 and can be paid off in five years or less. Be sure to show the amount of your proposed monthly payment and the date you wish to make your payment each month. Make absolutely sure you can make the payments.
The IRS charges a $43 fee for setting up an installment agreement. You will also be charged interest plus a late payment penalty on the unpaid taxes. The late payment penalty is usually one-half of one percent per month or part of a month of your unpaid tax. The penalty rate is reduced to one-quarter of one percent for any month an Installment Agreement is in effect if you filed your return by the due date (including extensions). The maximum failure to pay penalty is 25 percent of the tax paid late.
If you do not file your return by the due date (including extensions), you may have to pay a penalty for filing late. The penalty for failing to file and pay timely is usually five percent of the unpaid tax for each month or part of a month that your return is late. The maximum penalty for failure to file and pay on time is 25 percent of your unpaid tax.
In Closing
The IRS wants you in the system, even if you're broke. Whatever you do, file your tax return in a timely manner. Once filed, the IRS will work with you on payment issues. Don't get stressed. Keep in mind that millions of Americans have the same problem.
Richard Chapo is CEO of business tax recovery - Obtaining tax refunds for small businesses for overpaid taxes. Discovery tax strategies and deductions in our business tax recovery.
Chicago limo Skokie ..Taxpayers have two easy and convenient options for getting copies... Read More
Import duties continue to be significant elements in the cost... Read More
In the latest Star Wars episode, the evil empire executes... Read More
So, you were pleasantly surprised to learn that you are... Read More
Ever wish that, as a business owner, you knew exactly... Read More
Most people trying to make a crust online (or offline... Read More
As a small business owner or self-employed person, one of... Read More
"Settle for Pennies on the Dollar! IRS debts settled for... Read More
If your identity is stolen, your finances can quickly become... Read More
Many Americans believe that an IRS debt is a debt... Read More
In the rush to get tax returns prepared and filed... Read More
Yes, the tax season is upon with the first filing... Read More
All states also have their own tax system. Typically there... Read More
Have you been thinking about incorporating your small business or... Read More
One can never underestimate the enthusiasm that politicians have for... Read More
We all love to criticize the IRS, don't we? And... Read More
Your days as an entrepreneur and businessperson are consumed with... Read More
Let's assume that you would like to begin saving for... Read More
Millions of people file tax return extensions every year. The... Read More
Most people look forward to getting their tax return, but... Read More
Do you realize that some tax forms ask you to... Read More
The end of tax filing extensions is quickly approaching. What... Read More
Hit a big one? With more and more gambling establishments,... Read More
If your business has employees, you must pay employment taxes.... Read More
Following is a reproduction of the IRS's rules and requirements... Read More
limo O'Hare Bonfield ..Someone once said, 'the best way to calculate your taxes... Read More
Tilting the Tax Laws in Your Favor.In order to accelerate... Read More
As a small business owner, it's wise to familiarize yourself... Read More
As we enter mid-March, taxpayers begin to become very interested... Read More
How Home-Based Businesses Can Avoid Giving Uncle Sam... Read More
Should I take wages or dividends from my privately owned... Read More
At the present time a company incorporated in the Isle... Read More
Your days as an entrepreneur and businessperson are consumed with... Read More
Deducting Your Auto ExpensesAuto deductions are a very complex topic.... Read More
Most people trying to make a crust online (or offline... Read More
One way to maximize your business profits is by reducing... Read More
Recently, I stumbled across a concept that could change your... Read More
Someone once remarked, "Next to being shot at and missed,... Read More
How about a Tax Tip?As we all know Taxes are... Read More
Many Americans believe that an IRS debt is a debt... Read More
Assume a buyer in Pakistan downloads software from the Internet... Read More
If you have recently started an Internet or home business,... Read More
Following is a reproduction of the IRS's rules and requirements... Read More
Reservists called to active duty and enlistees in the armed... Read More
It's a major fear for most Americans: A notice from... Read More
Many taxpayers are confused about how long they should keep... Read More
The powers of Congress, and the limitations set upon those... Read More
Background issues of access to recordsTo assess the records at... Read More
With gas prices at an all time high before Hurricane... Read More
An early distribution from an Individual Retirement Arrangement (IRA) or... Read More
Tax |