Can't pay your taxes? What to do about extensions and interest

The deadline for filing federal taxes is three days later than usual this year. Even with that additional time, some people will need an additional amount of time to get their taxes filed. Filing your taxes on time is very important. If you cannot file or pay your taxes on time, then you need to contact the Internal Revenue Service as easily as possible. As with all debts that you owe, ignoring the problem isn’t the best way to manage the situation. Instead, you need to contact the IRS as quickly as possible to address the problem. Source for this article – Can’t pay your taxes? What to do about extensions and interest by MoneyBlogNewz.

Extending your filing deadline

You will need to get an extension in filing if you will not be able to file your tax return by April 18. The proper filing of IRS Form 4868 should do the trick. This will make the deadline October 17 instead. Filing can be extended very easily. Nevertheless, the deadline for paying taxes won’t change. Whenever you file form 4868, you are required to estimate what your taxes can be. That has to be paid with the extension form. Failure to file an extension or a return will result in a 5 percent per month penalty, up to 25 percent of your total tax bill.

Payment deadlines also accessible

Tax filings and tax payments are different. That means the deadlines are different as well. You will have to file taxes nevertheless, even if you can’t pay the entire tax bill when it is filed. That way, you can keep away from paying both a failure to file and failure to pay penalty. You need to pay as much as you can as easily as possible. Make an effort to pay at least 90 percent of what is required when filing. This will cancel all penalties for six months, until the extended filing deadline. After you file, the IRS will send you a bill. It will only take 30 to 40 days to get it. It is important to pay fast since interest and penalties accumulate at 4 percent each day. Get a hold of the IRS if there is no way to pay. Call 1-800-829-1040 to talk about payments.

Exploring tax settlement choices

There are always ads for tax debt settlement. Television uses these often for commercials. Typically it is a poor choice to make an effort to use these tax settlement services. Getting same day loans to pay the debt would be a safer choice. Working class individuals can file an Offer in Compromise on their own with the Internal Revenue Service, which is all the tax settlement services do. An Offer in Compromise should be the last resort, after attempting to create a payment plan with the Internal Revenue Service. There are individuals standing by to talk to individuals at the Internal Revenue Service. Just call and figure things out.

Articles cited

IRS

irs.gov/businesses/small/article/0,,id=104593,00.html

H&R Block

hrblock.com/taxes/tax_tips/irs/extension_info.html