The IRS has released tips for individual taxpayers who can’t pay their taxes on time.
Here are the five tips:
1. File your return on time and pay as much as you can with your individual tax return. That will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. You may use electronic, credit card payment methods or mail a check.
2. Consider obtaining a loan or paying by credit card. Interest and fees charged by a bank may be lower than those imposed by the IRS.
3. Request an installment payment agreement. You do not need to wait for the IRS to send you a bill. Agreement application can be found online or use Form 9465-FS with your individual return. The IRS charges a user fee to set up your payment agreement.
4. Request an extension of time to pay. Qualifying individuals may request an extension of time to pay. To see if you qualify visit www.irs.gov and get Form 1127, Application for Extension of Time for Payment of tax due to undue hardship.
5. If you receive a bill from the IRS, please contact them to discuss your payment options, Ignoring the bill will only increase interest and penalties.
To minimize interest and penalties, it is important to pay as much and as soon as possible. If you have any question, be sure to contact us at 503-244-8767, or the IRS as soon as possible.