Don’t fail to take action because you owe more taxes than you can afford to pay upon filing your tax return. Filing on time will save you money by avoiding the penalty for filing late. Below are options if you cannot pay the amount you owe by the deadline:
- File before the deadline and pay as much as you can. The more you pay at this time, the less interest and late payment penalty charges you will owe.
- Use the IRS Direct Pay option online. This is the latest electronic payment option offered by the IRS and offers the quickest method of payment. Visit IRS.gov/payments to make a payment or learn about other payment options.
- Pay the rest of your balance as soon as possible. Check interest and fee charges to determine if paying with a credit card or getting a loan is the best option. These charges may be less than the interest and penalties the government will charge for late payment of tax.
- Take advantage of the Online Payment Agreement tool. Here, you can ask for an installment agreement versus waiting for the government to send you a bill. You will have the option of choosing a direct debit installment agreement which will ensure no missed payments, avoiding any additional late payment fees. If you do not have the ability to use the online options, you can file Form 9465, Installment Agreement Request, instead. This form can be found at IRS.gov/forms.
- Do not ignore any tax bills. Ignoring a bill may lead the government to take collection action. Contact the IRS right away to discuss options. The IRS will work with you if you are facing financial hardship.
If you would like more information regarding this topic, please contact our office at (239) 433-5554. We would be happy to assist you with any questions you may have.