If you missed the tax deadline of April 18th, the IRS is urging taxpayers who have yet to file or pay their owed tax to do so by June 14thso avoid the penalty increase that will occur. Now, if you haven’t yet paid your taxes simply because you don’t have the extra money lying around, you may qualify for one of the payment options the Internal Revenue Services (IRS) offers. The fact is, many taxpayers will delay in filing their returns simply because they know they won’t be able to afford the tax that is due. However, this will only cause you to incur late fees which will gradually increase by five percent each month you fail to pay.
If you are wondering what these payment options are, read on below.
- Installment Agreement. An installment agreement is similar to a payment plan that allows a taxpayer to pay what they owe over a set period of time. If you do qualify for this option and owe $50,000 or less in combined tax, penalties, and interest, you can request a payment plan using the IRS’s Online Payment Agreement application. And if you have a balance under $100,000, you may also qualify for a short-term agreement also. The IRS says these agreements can be set up in minutes and requesters receive immediate notification of approval.
If you are given the option to take advantage of one of the payment plans the IRS offers, be sure to select the direct debt option for making these payments. This will help reduce the chances of defaulting and won’t require you to write and mail a check each month. If you would like to read more about the other ways you can set up a payment plan, visit Payment Plans, Installment Agreement on the IRS website.
- Offer in Compromise. Now, if you are a taxpayer who is struggling to pay your tax bill, you may qualify to settle it for a less amount than you owe instead. You would need to submit an offer in compromise, but again, you must qualify for this. To learn what the eligibility requirements are, use the Offer in Compromise Pre-Qualifier tool to get a better idea as to whether you can take advantage of this option.
If you are having trouble paying your taxes, it is important you enlist the help of a New York, NY tax attorney who can help determine if you are eligible for a payment plan or how you can reduce the amount that is owed to the IRS.
If you are someone who had trouble paying your 2017 tax bill, the IRS says you can avoid having this same problem when it comes time to file your 2018 return by increasing the amount of tax withheld from your paycheck. Although this might not be an appealing option for you, it is one way to help reduce the lump sum of money you will have to pay back when the next tax period arrives.
If for some reason, you have been notified by the IRS that you are being audited or you have delayed in filing several tax returns for previous years, then it would be in your best interest to contact a New York, NY tax attorney. USAttorneys.com works closely with some of the best tax and bankruptcy attorneys in New York, NY and can get you connected with one today. The fact is, once the IRS gets involved with your taxes, it is always a good idea to have a legal professional working on your side, protecting your interest.