What to Do If You Can?t Pay Your Taxes > NetSparsh

Home
>
Tax
>
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.

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.

In The News:

Stuff.co.nz
Greed, not taxes, will ruin this country | Stuff.co.nz
Stuff.co.nz
When the privileged belittle those who are struggling and tell them to work harder, it shows how ignorant they are. National's campaign strategy, which is to ...

and more »

Concord Monitor
President aims to achieve balancing act on taxes
Concord Monitor
In this Sept. 22, 2017, photo President Donald Trump speaks at a campaign rally in Huntsville, Ala. Trump says he wants to lure Democratic lawmakers to sign on to a Republican-crafted tax overhaul plan. But negotiators must grapple with the reality ...
Trump aims to achieve congressional balancing act on taxesMinneapolis Star Tribune
Trump, Republicans to showcase tax cut for businessesReuters
GOP eyes corporate tax rate of 20 percent, retreating from Trump's lofty goalWashington Post
CNBC -MSN.com
all 76 news articles »

STLtoday.com
Kirkwood police warn residents of scam involving delinquent taxes
STLtoday.com
The Kirkwood Police Department is warning that someone is scamming residents. The police phone number will show up on caller ID. The person on the line identifies himself or herself as an IRS agent and says the resident owes delinquent taxes from a ...

Newnan Times-Herald
County cracking down on unpaid taxes
Newnan Times-Herald
After the first year, the tax deed owner can take action to “foreclose on the right to redeem.” That requires notice to the property owner and a legal advertisement in The Newnan Times-Herald. Once the right to redeem has been foreclosed upon, the tax ...

and more »

NJ.com
Local leaders warn: Your property taxes will rise unless this happens
NJ.com
TRENTON -- New Jersey's 2 percent cap on police and firefighter arbitration awards must be renewed, or else taxpayers will see their services cut and property taxes rise, local government leaders said Friday. The cap on awards police and fire unions ...

Springfield News-Leader
Higgins, Reed to meet with Trump on taxes
Buffalo News
WASHINGTON – Two of Western New York's House members will head to the White House Tuesday to talk about tax reform with President Trump. Rep. Brian Higgins and Rep. Tom Reed are among several members of the tax-writing House Ways and ...
The tax reform we'd like to seeSpringfield News-Leader
Six ways Trump could hit the rich with tax planThe Hill
Presidential Tax Relief and Reform: Vital for Economic Growth, American JobsCourier-Times (subscription)
Reason (blog)
all 23 news articles »

The Korea Herald
Korea slaps more than W1.3tr in taxes on offshore tax evaders
The Korea Herald
The National Tax Service has collected only 1.067 trillion won in taxes as some people filed complaints with the country's Tax Tribunal against its decisions to slap taxes on offshore tax evaders, said Park Myung-jae, a lawmaker of the Liberty Korea ...

and more »

The Real Deal Magazine
How UK landlords and wealthy home buyers are avoiding property taxes
The Real Deal Magazine
Lawyers say they've found a technical loophole in the UK stamp duty tax laws: if buyers package their new home with a forested plot of land — even if the two lots are in different parts of the country — they could avoid “tens of thousands of pounds ...

and more »

The Gazette: Eastern Iowa Breaking News and Headlines
GOP priorities of lowering taxes, increasing school choice at risk in Iowa
The Gazette: Eastern Iowa Breaking News and Headlines
Yet more difficulties lurk ahead that are likely to cause lawmakers to rethink how and whether they approach priorities for them like reducing taxes and increasing ways for parents to choose private or religious schools with public help. When lawmakers ...

and more »

All taxes trickle down to consumers
The Decatur Daily
The people who developed the Fair Tax proposal discovered that, on average, the cost of goods and services carry a hidden federal tax burden of approximately 22 percent. And this was before Barack Obama; it has likely risen. But increasing costs are ...

Google News

What to Do If You Can?t Pay Your Taxes

Tax Tax