What To Do If You Can T Pay Your Taxes

What to​ Do If you​ Can’t Pay Your Taxes
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.
What To Do If You Can T Pay Your Taxes What To Do If You Can T Pay Your Taxes Reviewed by Henda Yesti on July 06, 2018 Rating: 5

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