The old adage that nothing is certain except death and taxes usually can be heard on the lips of many this time of year…that and a few curses. With the April 16th filing date fast approaching, you want to avoid procrastinating any longer, if you haven’t started the process yet. Procrastination not only increases your stress level, but the possibility that you will make costly errors in the process also increases.
If you find that you can’t pay your tax bill all at once, don’t panic. The IRS does allow installment plans or even payment by credit card. Granted, you may have to pay additional interest and late fees, but it may also make your tax bill more manageable in the long run. The IRS is even open to your own proposal for a monthly payment plan with suggested due dates. It never hurts to ask.
Finally, if you just can’t seem to find the time to pull it all together, you can request an automatic six month extension, BUT you still need to pay on time. In this type of situation, you need to make an estimate as to what your tax bill may be to make the payment.
If you can pay at least 90% or more of the tax due, you may be able to avoid additional penalities and late fees. If you overpay, you will have the option to either apply it to next year’s tax bill or request a refund. If you need to file an extension, you must file Form 4868 before the April deadline. The form is available by visiting www.irs.gov or by calling the IRS at 1-800-829-3676.