Couldn’t Pay Your Taxes?

Thanks for sharing this!

April 15th is history and you didn’t file your tax return or an extension. Why? Because you owe Uncle Sam money, and your checking account is running on empty.

Unfortunately, avoiding the issue won’t make it go away. Interest and penalties begin accruing from the due date of your return. Here are better options.

  • File right away and pay what you can. The IRS will send you a bill for the balance, usually within a month. Late payment penalties and interest still apply, but the sooner you pay, the less they’ll be.
  • Charge it. Instead of paying penalties and interest to the IRS, you’ll pay a convenience fee to your credit card provider, along with interest on any balance you carry over.
  • Borrow from the IRS. You can “borrow” from the IRS for up to 120 days for no fee, or request a longer term monthly installment plan, either on paper or on-line. The fee for an installment plan varies depending on your income level and whether or not you have the payment debited from your checking account.
  • Borrow from others. Friends, family, or your local bank or credit union may offer better interest rates on short-term loans than the IRS.
  • Make an offer. Think you’ll never be able to pay what you owe? You may be eligible for an Offer in Compromise. An OIC is an agreement between you and the IRS that may result in an adjustment or let you pay less than the full amount owed. Look for Form 656-B.

You might also like these posts

Article – Preparing for Hurricane Season Image source: By Nilfanion , via Wikimedia Commons. The map shows the tracks of all tropical cyclones which formed worldwide from 1985 to 2005.The Atlantic hurricane season begins June 1. While the 2014 season is expected to be a mild one, mild doesn’t mean storm-free. Getting ready early is a good idea—and early preparati...
Article — Locked Out Image source: UK, public domain, via Wikimedia Commons What’s on your computer? Your manuscripts? Work? Photos? What would you do if you were denied access to those files—if you were locked out by rogue hackers? If you’re shaking your head because you think nothing on your computer is of value to hackers, consider th...
Article — Tax Identity Theft Awareness Week Image source: ftc.gov Taxes are scary enough, without adding tax identity theft to the mix. The costs—$3.6 billion a year according to an estimate by the US Treasury Inspector General for Tax Administration—are scary, too. Unfortunately, both tax ID theft and the costs are on the rise. The US Federal Trade Commission...
Article — Your 2013 Federal Income Tax Return Image source: IRS.gov Whether you’re a part- or full-time freelancer, receiving income means filing a tax return. Here are three things to keep in mind as you look back at your 2013 business activity. Dates: The IRS will begin accepting 2013 business returns on Monday, January 13, 2014. For individual returns, the da...

We write. Visit us in Carpenter Country, a magical place that, like our stories, is unreal but not untrue.

Posted in Articles Tagged with: ,