Are you ready to file your tax return, but can’t pay up by Tax Day? File anyway to reduce the hit to your wallet. File your return even if you’re going to owe and don’t worry, you have several options if you owe money on your taxes.
Here are some information to help decide which option is best for you:
- Extension of Time to Pay
You can file your tax return, then request an extension of time to pay. This extension will get you up to 120 days to make the payment. There are no fees to get the payment extension, but interest and penalties will apply to the full taxes you owe until it’s paid.
- Request an Installment Agreement
Most common way to handle a tax bill, if you can’t pay immediately is to request an installment agreement (payment plan) which allows you to pay your tax debt in different plan option that the IRS provided with a period of time.
To find more information about installment agreement, read this IRS article: https://www.irs.gov/payments/payment-plans-installment-agreements
- Offer in Compromise
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed.
To find more information about offer in compromise, read this IRS article: https://www.irs.gov/payments/offer-in-compromise
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