Scottsdale CPA | File on Time
Have you prepared or had your income tax returns prepared and realized that you owe more income tax than you can afford to pay by April 15th? If so, don’t ignore it. Here are the steps you should follow if you owe more tax than you can afford to pay by April 15th?
- File on time and pay as much as you can afford to. You should file on time to avoid the late filing penalty. Pay as much money as you can afford to pay with your tax return. This will help to minimize the interest and late payment penalty.
- Pay online with IRS Direct Pay. This is the latest electronic payment option available from the IRS. It allows you to schedule payments online from your checking or savings account with no additional fees and with immediate confirmation of your payment. It’s secure, easy to use, and much quicker than mailing in a payment.
- Pay the rest of your tax bill as soon as possible. Paying the balance quicker will help to minimize the interest and late payment penalties on the balance due. If at all possible, use a credit card or loan to pay your balance. The fees charged by the credit card or bank may be lower than the combined interest and penalty being charges by the IRS.
- Use the Online Payment Agreement tool. There is no need to wait for the IRS to send you a bill to ask for an installment agreement. By using the Online Payment Agreement tool on IRS.gov, you can set up direct debits so you don’t need to write a check or miss any payments.
- Don’t ignore a tax bill. If you get a bill from the IRS, do not ignore it. The IRS may begin the collection process if you ignore them. Contact the IRS and discuss you situation.
If you have any questions feel free to contact us at Dusseau & Makris, PC, your Phoenix CPA firm.