If you find that you owe more taxes than you can pay with your tax return, don’t panic. Make sure to file on time. That way you won’t have a penalty for filing late.
Here is what to do if you can’t pay all your taxes by the April 15 due date.
1. File on time and pay as much as you can. File on time to avoid 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. Visit IRS.gov for electronic payment options.
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. Call the IRS atand request an extension of time to pay. You may be granted up to 120 days if you are able to pay the full amount by the date granted. Interest will accrue, but penalties will not which could save you 10+% of the tax balance you currently owe.
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.
In short, remember to file on time. Pay as much as you can by the tax deadline and pay the rest as soon as you can.
Contact JSSB ltd with any questions about the IRS collection process. We can work directly with the IRS on your behalf to request an extension to pay, establish a payment plan, or put IRS collection activity on hold until you get back on your feet.