The end of tax filing extensions is rapidly drawing near. What do you do in the event you can't pay the amounts you owe? You need to still file your return by the due date and pay as much as you can. You will find, however, extra steps that might help.
Credit Cards
You can charge your taxes on your American Express, MasterCard, Visa or Discover cards. In the event you go in this direction, you are able to 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 might be able to pay any remaining balance over time in monthly installments via an installment agreement. If you are completely erased and also the future looks grim, you might also want to think about 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 one's tax return. The IRS has streamlined the approval process if your total taxes (not counting interest, penalties or other additions) don't go beyond $25,000 and may be paid off in five years or less. Make 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 are able to make the payments.
The IRS charges a $43 fee for setting up an installment agreement. You will also be charged interest along with a late payment penalty on the unpaid taxes. The late payment penalty is usually one-half of 1 % each month or part of a month of your unpaid tax. The penalty rate is reduced to one-quarter of one % for any month an Installment Agreement is in effect in the event you filed your return by the due date (such as 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 (such as extensions), you may need to pay a penalty for filing late. The penalty for failing to file and pay timely is generally 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 % 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. Do not get stressed. Keep in mind that millions of Americans have the same problem.
Credit Cards
You can charge your taxes on your American Express, MasterCard, Visa or Discover cards. In the event you go in this direction, you are able to 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 might be able to pay any remaining balance over time in monthly installments via an installment agreement. If you are completely erased and also the future looks grim, you might also want to think about 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 one's tax return. The IRS has streamlined the approval process if your total taxes (not counting interest, penalties or other additions) don't go beyond $25,000 and may be paid off in five years or less. Make 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 are able to make the payments.
The IRS charges a $43 fee for setting up an installment agreement. You will also be charged interest along with a late payment penalty on the unpaid taxes. The late payment penalty is usually one-half of 1 % each month or part of a month of your unpaid tax. The penalty rate is reduced to one-quarter of one % for any month an Installment Agreement is in effect in the event you filed your return by the due date (such as 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 (such as extensions), you may need to pay a penalty for filing late. The penalty for failing to file and pay timely is generally 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 % 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. Do not get stressed. Keep in mind that millions of Americans have the same problem.
About the Author:
If you want more information on San Diego Income Tax, don't read just rehashed articles online to avoid getting ripped off. Go here: San Diego Income Tax
0 comments:
Post a Comment