Cannot Pay Your Tax Bill

If you find you owe more than you can pay with your tax return, what ever you do don’t panic.

Fist of all, whatever you do, make sure to file on time.

That way you won’t have a penalty for filing late.

This penalty hurts and can be upwards of 25%of the total tax.

Here is what to do if you can’t pay all your taxes by the due date.

1. File on time and pay as much as you can.

Filing on time avoids a late filing penalty.

Pay as much as you can to reduce interest charges and a late payment penalty. You can pay online, by phone, or by check or money order.

2. Get a loan or use a credit card to pay your tax.

The interest and fees charged by a bank or credit card company may be less than IRS interest and penalties.

For credit card options, see IRS.gov.

3. Use the Online Payment Agreement tool.

You don’t need to wait for IRS to send you a bill before you ask for a payment plan. The best way is to use the Online Payment Agreement tool on IRS.gov.

You can also file Form 9465, Installment Agreement Request, with your tax return. You can even set up a direct debit agreement.

With this type of payment plan, you won’t have to write a check and mail it on time each month. It also means you won’t miss payments that could lead to more penalties.

4. Don’t ignore a tax bill.

If you get a bill, don’t ignore it. The IRS may take collection action if you ignore the bill. Contact the IRS right away to talk about your options.

If you are suffering a financial hardship, the IRS will work with you.

If you Cannot Pay Your Tax Bill, Here is what YOU CAN DO, Fresh Start Tax LLC, Former IRS