Let us create a 3D eBook for you!
Let us create a 3d Digital eBook for you! DigyCat.com

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.

Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Discovery tax strategies and deductions in our tax articles section.


MORE RESOURCES:

Taxes - Google News

This RSS feed URL is deprecated

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

The case for a junk food tax - Vox


Vox

The case for a junk food tax
Vox
Some kind of government intervention in the food environment probably has to be part of the solution. Taxes have been an effective, though still controversial, approach to curbing the consumption of tobacco, alcohol, and soda. Now researchers from New ...

and more »

4 things to know about the new US tax law - Yahoo Finance


Yahoo Finance

4 things to know about the new US tax law
Yahoo Finance
Under the old tax code, the average family of four (that submitted taxes married-filing-jointly) received a tax break of $16,200 through the personal exemption, one $4,050 exemption for every member of the family. That's gone now, but in its place the ...
Gig-job workers had better beware of pay-as-you-go tax payments CNBC

all 2 news articles »

9 Ways the New Tax Law Affects Millennials - Investopedia (blog)


Investopedia (blog)

9 Ways the New Tax Law Affects Millennials
Investopedia (blog)
The new tax law, the Tax Cuts and Jobs Act, has generated significant buzz as tax experts speculate on how the average American's tax bill will be affected. Some of the most important changes center on key deductions and credits that could have a ...
Ask The Taxgirl: Claiming A Tax Refund When You Owe Tax Forbes
Here's the First Day You Can File Your Taxes This Year Motley Fool

all 81 news articles »

Phone, hotel taxes likely to rise in Naperville - Chicago Daily Herald


Phone, hotel taxes likely to rise in Naperville
Chicago Daily Herald
"From my perspective, especially with the new federal tax law that caps state and local taxes at a $10,000 deduction, it makes a lot of sense to look for alternative revenue streams other than property taxes," Mayor Steve Chirico said. "I think these ...

Did Cook County's failed soda tax cause sales taxes to fizzle, too? - Chicago Daily Herald


Chicago Daily Herald

Did Cook County's failed soda tax cause sales taxes to fizzle, too?
Chicago Daily Herald
The decline in tax revenue from August to September is the equivalent of nearly 2 million fewer 2-liter bottles of soda being sold. Receipts from November -- the fourth and final month the sweetened beverage tax was in effect -- aren't expected until ...

The Government's Taxes on Citizens' Free Time - New Republic


New Republic

The Government's Taxes on Citizens' Free Time
New Republic
When will workers see the fruits of the recently passed Republican tax bill? In just a few weeks, according to the Internal Revenue Service. Last Thursday, the agency released updated tax withholding tables for employers, so that the amount taken out ...
The IRS hired bill collectors to collect back taxes — and got ripped off Los Angeles Times

all 38 news articles »

State of Taxes: Rockland County braces for 2018 tax debate: Tax Watch - The Journal News | LoHud.com


The Journal News | LoHud.com

State of Taxes: Rockland County braces for 2018 tax debate: Tax Watch
The Journal News | LoHud.com
Tax Watch columnist David McKay Wilson looks into the tax debate brewing on many levels in Rockland County in 2018. A decade after borrowing $191 million to pay property tax refunds to a power plant owner, the North Rockland schools still have 20 more ...

Analysis: There's a reason Texas governors keep failing to lower property taxes - Texas Tribune


Texas Tribune

Analysis: There's a reason Texas governors keep failing to lower property taxes
Texas Tribune
It's in the Texas Constitution: The state can't levy a property tax. The governor and the Legislature can't lower rates. The state doesn't do property appraisals, either, so they can't mess with the value of any particular property on the tax rolls ...
Abbott wants to limit local jurisdictions' ability to raise Texans' taxes Dallas News
Gov. Abbott proposes 2.5 percent cap on property tax revenues Chron.com

all 31 news articles »

Financial Sinkhole States In The Trump Tax Era - Forbes


Forbes

Financial Sinkhole States In The Trump Tax Era
Forbes
What damage will the loss of a deduction do to blue states with stiff taxes? Do you live in a sinkhole state? There are eight of them, led by California and New York. These are places where the population dependent on the state — for employment ...

LargeFriends.com - the best dating site for plus-sized singles!
SuccessfulMatchCentral.com - the best dating site for plus-sized singles!

PreLaunchX

PrimeNews Domain Is For Sale - $5,000 For Enquiries eMail Us

© www.PrimeNews.biz - 2012

home | site map | links